Interactive Brokers Traders Insight

Wall Street was anticipating today's third-quarter GDP report to be a monster print, but the figure arrived even hotter than expectations. The report showed persistent consumer spending, which is anchoring hawkish monetary policy expectations despite the data providing favorable inflation news.

Pricing pressures are not limited to the real estate sector, as companies like Heineken, Tesla, and Winnebago are also struggling to pass on higher input costs to customers, with some even engaging in a price war.

Retail sales push yields back towards upper end. The strong retail sales data released this morning from the Commerce Department points to a giant third quarter GDP print, which is scheduled for release next week and is likely to keep the Federal Reserve a focus point for investors.

Cloud-based inventory systems and distributed ledgers such as blockchain are improving supply chain and inventory management by providing real-time updates.

The latest Consumer Price Index (CPI) report shows that inflation is at its swiftest pace in over a year, with a 0.6% month-over-month increase and a 3.7% year-over-year rise.

Labor momentum continues to decelerate, with job growth slowing significantly in August, implying that the inflation-ridden, red-hot services sector may finally be reaching supply and demand balance.

The recent rise in long-term yields and the health of the banking sector will be top of mind for investors while Powell and the committee consider how high and how long the fed funds rate should be.

Amazon's Prime Day sales event propelled ecommerce sales up 1.9%, while strong retail sales across the economy, led by sportswear, restaurants, and apparel, rose 0.7% month-over-month and 3.2% year-over-year.

The Federal Reserve's aggressive monetary policy tightening is slowly helping to moderate inflation, but it has more work to do to tame price increases in the sticky services components which will likely require further slowing in the labor market. Wage pressures remain strong driven by a tight labor market and consumption is slowing while GDP growth is easing.

The idea that stocks go up more often than not should not be surprising, but the fact that August tends to be a down month in the S&P 500 is a well-known phenomenon.

The economy appears to have missed the Federal Reserve Bank memo telling it to slow down, with today's GDP and durable goods data exceeding expectations while initial unemployment claims point to persistent labor market tightness.

The recent softness in residential construction is largely due to mortgage interest rates of nearly 7%, making homes less affordable for buyers, with permits for new home construction falling 3.7% from the previous period.