Weekend Update 10/16/2022

Weekend Update recaps market highlights and major news from Ursa’s portfolio. Not on Ursa yet? Download Ursa from the App Store!

October rally fades as new CPI data comes in hotter

🔥  Inflation stays hot. September 12-month CPI grew 8.2%. It was slightly down from August’s 8.3%, but above the expected 8.1%. Rollercoaster for markets despite initial plummet finished up +3% on Thursday. Then, stubborn #InflationFears reality set in Friday with over -2% pullback. S&P 500 finishes down -1.5% for week.

🤔  Recession thoughts. Initial bullish CPI sentiment likely driven by peaking optimism with investors too eager to move beyond #InflationFears. While we are cautiously optimism the market is closing in on its bottom, stubborn #InflationFears, steepening #RisingYields and #RecessionWatch magnitude uncertainty are still near-term headwinds to work through.

️⛅️  Earnings optimism. Q3 earnings season kicked off this week. Definitely low expectations, but many companies reported upside. Small bright spot in #InflationFears dominated week. Overall, #ConsumerNoConfidence not here yet with spending still strong, but companies continue to prepare with #CorporateBeltTightening.

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The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.