By Ryan O'Rourke on March 15, 2024

Happy Friday March 15th!

Rising inflation could further delay interest rate cuts at next week’s “data dependent” Federal Reserve meeting.  “March Meowness” program erases library fines.  Celebrate St Patrick’s Day on Sunday!

#1 – Weekly Market Recap – Stocks experienced another volatile week as consumer and producer inflation was higher than expected. 

Stock markets closed Thursday afternoon little changed, with the S&P 500 and Dow Jones both up roughly +0.5%, while the Nasdaq came in flat through Thursday. 

With the Federal Reserve meeting occurring next week, investors appear increasingly cautious over concerns that rising inflation could further delay anticipated interest rate cuts.  

#2 – Consumer and Producer Inflation Continue to Rise – Consumer inflation, measured by the Consumer Price Index (CPI), rose +0.4% in February vs +0.3% in January and is up +3.2% from a year ago. The monthly increase aligned with expectations, while the annual increase slightly surpassed the +3.1% forecast.

Core CPI, which excludes volatile food and energy prices, saw a +0.4% increase and a +3.8% increase from a year ago, exceeding the +3.7% estimate. 

Producer inflation, measured by the Producer Price Index (PPI), surged by +0.6%, surpassing the +0.3% estimate. Annual producer prices rose +1.6%.

Energy prices were a major contributor to increased producer prices with a +4.4% rise in February.  Excluding food and energy prices, producer prices rose by +0.3% in February and increased +2.0% for the year.

As shown in the chart below, the 0.4% CPI increase marks the fifth consecutive monthly increase and the highest monthly consumer inflation reading since August of 2023. News of reaccelerating inflation weighed on investors as next week’s Federal Reserve meeting approaches.  Rising inflation could require a “data dependent” Federal Reserve to further push out anticipated interest rate cuts.  

Source: Wall Street Journal

#3 – Rising Inflation Drives Bond Yields Higher – This week’s increased consumer and producer inflation reports pushed bond yields higher. 

Bond yields jumped the most in five months this week with 10-year Treasury yields rising from 4.08% to 4.29%.  The 21 basis-point increase makes this the worst week for bond yields since October 2023 as investors push out the timing of anticipated Federal Reserve interest rate cuts. 

Next week, investors will be focused on Wednesday’s Federal Reserve meeting when they provide updated forecasts for expected inflation, GDP, and interest rates for the remainder of 2024. This will be the first forecast from the Fed since the December meeting when they indicated three rate cuts were projected in 2024.

#4 – ‘March Meowness’ – Forgiving library fines has taken a fun and cute turn at a Massachusetts library for the month of March.

The Worcester Public Library announced its “March Meowness” forgiveness program. The program allows library patrons to clear their accumulated fines by submitting a photo of a cat in place of cash.

“Even if you don’t have a cat in your life, you can still draw one,” said Worchester Public Library executive director Jason Homer. “Even if it’s one of the big cats, like a tiger or a lion, and we’ll be excited to see those.”

Library officials were inspired to try something new when they noticed a large number of younger library users had amassed significant late fees since the start of the pandemic. The library said it had cleared fines from more than 400 accounts during the first week of the month.

If cats aren’t your thing, the library’s website clarified that the program isn’t limited to just cats, but any animal “We’ll accept honorary cats as well, so you may show us a picture or drawing of a dog, raccoon, orca, capybara or any other animal.”

Wouldn’t it be nice if credit card or mortgage companies offered a March Meowness program!

Source: UPI

#5 – The Luck of the Irish – This Sunday is St. Patrick’s Day! Whether-or-not your ancestors hail from the Emerald Isles, everyone is Irish on St Paddy’s Day.  

St. Patrick was the patron Saint of Ireland.  The holiday originally marked the anniversary of his death in A.D. 461 more than 1,500 years ago. The earliest known celebrations were held in the 17th century on March 17th.

There are numerous traditions and fun ways to celebrate St. Patrick’s Day. You can easily break out your favorite green outfit, attend a parade, sample some Irish whiskeys, Irish coffee and green beer or cook traditional Irish food. At DSG Advisors, Denver spends the day celebrating his birthday (yes, he is Irish!).

Corned beef and cabbage are considered a hearty Irish meal often served around the holiday – although the dish is actually an American creation. Corned beef was a cheaper substitute for the traditional ham eaten in Ireland. In the late 19th and early 20th centuries, impoverished Irish Americans living in lower Manhattan would buy leftover corned beef from ships returning from the tea trade in China. The Irish would boil the beef 3 times, the last time with cabbage to remove some of the brine, making it more palatable.

Ever wonder how Leprechauns and shamrocks became commonly associated with St Patrick’s Day? The shamrock, or three-leaf-clover, was considered a sacred plant that symbolized the arrival of spring and has been associated with Ireland for centuries. By the 1600’s, the shamrock had become a symbol of Irish nationalism.

While the red-haired, green-clothed Leprechaun likely stems from Celtic belief in fairies – tiny men and women who could use their magical powers to serve good or evil, the original Irish name for Leprechaun is “lobaircin,” meaning “small-bodied fellow.” Legend has it that leprechauns discovered pots of gold and other buried treasure that had been abandoned by Viking invaders and reburied it again so no human could ever find it. Folktales tell us that the pots of gold are hidden at the end of rainbows.  

If you are lucky enough to find a leprechaun’s pot of gold, make sure you call DSG Advisors, we’re always happy to help!

Source: History

Have a great weekend!

Denver & the DSG Team

DSG Advisors
3033 Excelsior Blvd, Suite 530
Minneapolis, MN, 55416
(612) 293-9700
dgilliand@dsgadvisors.com