Yahoo Finance’s Julie Hyman, Myles Udland, and Brian Sozzi discuss the May jobs report, inflation, and meme stocks.
Yes, we know, it’s already Tuesday.
But a really interesting week for economic data and corporate news is just getting underway.
Later this morning we’ll kick off three straight days of data that will offer updates on the biggest debates happening in the market right now — the labor market recovery, inflation pressures, and meme stocks.
In a way, all of these arguments can be connected with something like: Are people making so much money trading meme stocks with their stimulus checks that they don’t need to go back work? And so on and so forth.
But each of these debates can also get quite detached from what the latest data tell us is or is not going on. Labor, prices, and the social role of markets are financial as well as political questions. And they each attempt an answer at what we should do with our time and how we should be compensated for it.
Fortunately, the next three days offer us data, not opinions, on developments along each front. The philosophical debates can resume in a week.
Thursday morning’s inflation reading for May is likely to be the biggest market mover.
The consumer price index for May is expected to rise 4.7% over last year, which would be the most since 2008. On a “core” basis, which strips out the more volatile cost of food and gas and is preferred by policymakers, prices are expected to rise 3.4%. This print would be the hottest annual core inflation reading since the early ’90s.
As Yahoo Finance’s Emily McCormick outlined in a preview all of this week’s economic data, Wall Street economists see inflation as a “secondary” concern when compared to talk about the Fed pulling back on its bond purchase program. But as we wrote in the Morning Brief last month, investors seem to be growing impatient with the Fed’s insistence that inflation pressures will be transitory. Impatience that grew after just one month of hotter-than-expected inflation. A second straight month of inflation beating expectations would only heighten this debate.