inflation The issue is entrenched in the minds of many corporate executives, even as Federal Reserve Chairman Jerome Powell announced his view of disinflation earlier this month.
Of the S&P 500 companies that reported earnings from Dec. 15 to Feb. 23, 325 cited the word “inflation” in their earnings calls, according to FactSet’s latest research (see chart below). . According to FactSet, the figure beats the five-year earnings release average of 201 inflation references and the 10-year average of 157.
If there’s any saving grace, the number of S&P 500 companies reporting inflation in earnings calls so far has dropped 20% quarter-to-quarter this season.
“Several quarters last year we saw inflation in the high teens to 20%. Now we expect high single digits. [percentage] Hostess Brands (TWNK) CEO Andy Callahan told Yahoo Finance Live.
Recent data confirms inflation’s resilience despite a series of Fed rate hikes dating back to early 2022.
Core Personal Consumption Expenditure Index (PCE) — The Fed’s favorite inflation indicator — 4.7% YoY increase in JanuaryIncluding food and energy prices, PCE rose 5.4% year-on-year.
Both indicators beat Wall Street’s expectations and were at a faster pace than December.
“Modern America [inflation] “Given the boom-bust nature of this cycle, the data are probably more convincing of a hard landing,” warned Deutsche Bank strategist Jim Reed.
The result shook the broader stock market on fears that the Fed might get stronger. lead to a hard economic landing.
All three major indices fell about 3% last week, their worst weekly performance of 2023. The S&P 500 fell in the first week in a row, while the Dow Jones Industrial Average fell for a fourth consecutive week of value declines. It was dropped.
“And from what I’ve read, I know inflation is a bit of a jerk. But I feel like the Fed is going to get some of it done with interest rates, either in the summer or the spring.” Floor & Decor (FND) president Trevor Lang told analysts recently. Financial results announcement.
Brian Sotzi Editor-in-chief of Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and LinkedIn.
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