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'Historically strong' wage growth bad news for stocks?

Wages look to be on the rise, and unfortunately for some companies, that means their labor costs are rising, too.
On Wednesday, the National Federation of Independent Business reported that the net percentage of firms planning to raise worker compensation increased to 20 percent, which it called a "historically strong" number in the most recent economic recovery.

According to Deutsche Bank's Joseph LaVorgna, this data point generally leads the employment cost index (ECI) for private industry workers. As the percentage of firms planning to raise compensation goes up, that should indicate a "sharp acceleration in labor costs."

"A regression of the ECI on NFIB compensation plans tells us that the growth rate of the former should pick up dramatically over the next few quarters," LaVorgna wrote in a Wednesday note. "Clearly then, the NFIB is pointing to stronger wage pressure."

http://www.cnbc.com/2015/12/09/historically-strong-wage-growth-bad-news-for-stocks.html