MMM ride the wave of a strengthening global economy. Airlines are adding seats. That means fares could drop.
But some are also mentioning higher wages. CAT this week expects steel and other commodity costs to be a headwind all year. KMB said margins were impacted by significant commodity inflation. WHR said profits took a hit from raw material inflation. AVYwhich makes packaging materials, they saw price increases for petrochemicals and paper as well.
Several companies like Chipotle separately brought up higher wages as well. A few said they were just going to raise prices in response.
AO Smith which makes water heaters and air purifications products is raising the price tag on its products by 12 percent because of higher steel prices, and rising freight costs. But not everybody can afford to raise prices. Autos, apparel, tech hardware and household personal products are already seeing some of their profits under pressure.
All of these sectors are impacted by higher commodity cost. And higher commodity cost could ripple through the stock market and the economy over the next week and a half or so.
So, joining us to talk about all of that is Ryan Sweet. Good to see you, gentlemen. Lots to talk about. Of those things that I highlighted, which one of the economic reports are you going to be watching the most closely? Well, over the next week or so, there are two key ones.
And the unemployment rate in the U. The cost of money is going up. So, Ryan, if indeed we get strong readings in the PCE and other indexes, does it change your assessment of what the Fed is going to do or do you think the Fed would reassess?
I think the Fed is pretty much on course to raise rates a total of three to four times this year. They signaled three in their summary of economic projections.
In the so-called dot plot, which shows all the participants expectations of where the Fed fund rates can be at the end of the year, end of this year and next year, if you take out the lowest two, we get four rate hikes this year.
So, actions today effect — by raising interest rates, will affect the economy down the road. So the Feds got to be very forward looking and I think the Fed is trying to pull off the miracle in trying to land this plane perfectly on the tarmac. I mean, they did inthey could throw us back into recession.
This is a great school. But I got to hear you tell me, do you think the Fed can overstep here and send us to recession?A printable Episode Guide for Nightly Business Report: a handy overview of all of the show's episodes. counsel. welcome back to "nightly business report", derwood.
>> thanks very much, paul. >> paul: when you were last with us in may, stocks had raleigh sharply off their march lows, and you were reluctant saying the move was horm in a long-term bear market. have the continued gains since then changed your mind?
>> well, the market rally, the. "Nightly Business Report produced by CNBC" (NBR) is an award-winning and highly-respected nightly business news program that airs on public television. Telev. Description "Nightly Business Report produced by CNBC" (NBR) is an award-winning and highly-respected nightly business news program that airs on public television.
"Nightly Business Report produced by CNBC" (NBR) is an award-winning and highly-respected nightly business news program that airs on public television. Televisions longest-running evening business news broadcast, "NBR" features in-depth coverage and analysis of the biggest financial news stories of the day and access to some of the worlds top.
snippet of the full text of show: captioning sponsored by wpbt >> susie: gerald ford led the nation through inflation, recession, and an oil embargo.
now, after his death, the nation bids farewell. we look at the economic legacy of america's 38th president. >> jeff: investors send stocks soaring on wall street on new data raising hopes the housing .