From CNBC's "Dow futures drop 500 points after hot inflation report" posted early Tuesday:
Stock futures dropped on Tuesday morning after an August inflation report came in hotter than expected.
Dow Jones Industrial Average futures sank 525 points, or about 1.6%. S&P 500 futures fell more than 2% and Nasdaq 100 futures slid 2.7%.
The August consumer price index report showed a higher-than-expected reading for inflation. Headline inflation rose 0.1% month over month, even with falling gas prices. Core inflation rose 0.6% month over month.
Economists surveyed by Dow Jones had been expecting a decline of 0.1% for overall inflation, with a rise of 0.3% for core inflation...
"The fact the SPX has rallied so much in the last few days will make the index especially vulnerable to a downdraft. The fact the sources of inflation were so widespread is another negative (it's hard to pin the upside on any one category)," said Adam Crisafulli, founder of Vital Knowledge.
My take: This too will pass.
Mebbe like a kidney stone, though, with a lot of pain… 🙁
I agree the risk for Apple is if demand has weak legs and falters before Christmas or end of year.
Apple’s innovations and earnings growth ultimately prevail regardless of how easy or hard it is to tackle inflation.
But.
There’s a big difference between putting the brakes on a roaring economy and bringing an economy to its knees , ie, creating a recession. Nothing I’ve seen thus far suggests that last eventuality is even close to happening.
And for Apple? It literally can’t keep up with demand as it is, and can only increase its high quality production capacity by so much per year anyway. It will continue to grow its cash flow fire hose, which is already a world wonder, no matter what the value of the dollar becomes.
Yet again, advantage Apple.
A Russian defeat in Ukraine will result in Putin’s “retirement” from public service leading energy and food stuffs price normalcy.
Should Russia lose in Ukraine, as I believe it will, whether conventional or nuclear, it would be suicidal to believe that escalating the conflict would be to Russia’s benefit. At that time opposition to Putin would escalate to a breaking point (for him).
After all, the war then would not be against Ukrainians using NATO weapons, it would be against NATO weapons AND forces (including Air Forces).