Wall Street Breakfast Stagflation scare
Mar 3, 2025
Economic anxiety looms as the ISM Manufacturing Index reveals rising costs and declining orders, hinting at stagflation. AbbVie dives into the weight-loss industry, potentially reshaping healthcare investments. Meanwhile, Kroger faces leadership changes with its CEO’s resignation, and Domino's spices things up by introducing a stuffed crust pizza. The conversation also touches on strategic picks in the healthcare sector, showcasing how corporate news intertwines with broader market trends.
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Stagflation Risk
- The ISM Manufacturing Index fell, indicating a potential stagflation risk.
- Economist Mohamed El-Aryan noted this risk, highlighting the surge in prices and weaker activity.
Rising Production Costs
- The prices paid component of the ISM index surged, raising concerns about increased production costs.
- These costs could be passed to consumers as higher prices, contributing to inflationary pressures.
Supplier Delivery Wait Times
- Wells Fargo economists noted that longer wait times for supplier deliveries contributed to the ISM index.
- However, this doesn't accurately reflect demand, so the expansionary signal should be viewed cautiously.