Wall Street Breakfast Inflation going the wrong way
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Feb 12, 2025 January's Consumer Price Index surprised many by rising more than expected, prompting discussions on its implications for the stock market and bond yields. CVS Health enjoyed a stock surge following promising earnings, while major players like Kraft Heinz also faced the heat of inflation. Concerns arise over the vulnerabilities of the 'magnificent seven' tech stocks amid shifting consumer trends. Ken Griffin voices his critiques on trade policies, highlighting the complexities in today’s corporate landscape.
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Inflation Acceleration
- January's Consumer Price Index (CPI) increased by 0.5%, exceeding expectations and accelerating from December's 0.4% rise.
- Core CPI, excluding food and energy, also rose by 0.4%, surpassing predictions and the previous month's 0.2% increase.
Egg Prices Soaring
- Egg prices increased significantly, up 15.2% in January and 52.2% year over year.
- Michael McDonough's personal "bacon, egg, and cheese" index reflects this jump, with a record 6.1% monthly increase.
Bull Market Threat
- David Russell warns that if inflation isn't controlled soon, it could end the bull market.
- "Sticky" inflation in used cars and auto insurance adds pressure on the Fed and White House.