Fair chance of that. In the meantime, I need new kicks... ;) Nike does a great job at surprising market. It definitely did during covid. It and FedEx has promising earnings coming up. But I'll take Nike over FedEx. UPS is way better. They actually train their drivers, union wages, competent workforce. I'd be happier if FedEx never got a dime from me. But Nike is a brand name like Macy's that just won't die. Even if the chatter on Nvidia doesn't produce much, because what do they have until next earnings, after this? There's still other opportunities. I do anticipate more pullbacks now that it's apparent that even the impossible bull rally can slip up.
One thing that definitely enticed me after this PPI report was the energy sector. Producer costs going up were largely in part to oil, and other raw goods. Copper especially jumped. Until those come back down, I don't have a high hope in a better PPI, because a hot CPI follows when PPI is bad. We all know companies like to pass the buck onto consumers when price margins contract.
Yeah Powell has a mess on his hands for sure right now. The rate pause was oil related. Average days of oil left was 30-40 until September 2023, it fell to 17. Well... that's kind of what spurred a lot of what we're all seeing right now. Oil is still king and I have an inkling it's only going to get worse. It's a shame people still think it's a "fossil fuel." Fossils stop at the sedimentary layer and oil is drilled more often from way further below into granite. It's the "resin" if you will, leftover from thermostatic exchange of rock to magma and back in the sweet spot temp +/- 1 degree from solid to liquid. Byproduct that we just will never be able to consume fast enough.
Kind of like how water can be solid, liquid, and gas all at once at the perfect temp and pressure. But Rockefeller wasn't dumb. Coin it fossil fuels and make it seem like it's scarce so you can jack the price through the roof. Old reservoirs that were emptied, refilling over and over. The more you know... anywho.
We're in a very interesting transition phase. If Powell can beat the rising energy costs, the rally will continue! But I don't personally believe it's in the cards, unless this starts to get very political.
