The United States: Economists continue to forecast higher inflation next year, with the core PCE index climbing above the 2% level.
Morgan Stanley expects inflation increases to be driven by services that exclude housing and medical care.
Equity Markets: The retail sentiment on equities has soured.
Institutional investors have been moving into money markets.
However, Merrill Lynch’s clients have been buying stocks in recent weeks.
Emerging Markets: Despite the market rout, most EM economies are still in growth mode.
Credit: One of the reasons for the weakness in IG is US corporations selling their holdings as they repatriate cash to the US and deploy it.
Eurozone: Will the ECB exit its QE program later in the year? Here is one scenario.
Rates: US households are not significantly exposed to floating rates (such as home-equity loans).
Energy: OPEC’s cuts are offset by the non-OPEC production increases.
Here are the contributions to non-OPEC production over time.
Food for Thought: Sports-betting legal status by state.
Edited by Joseph N Cohen
To receive the Daily Shot Premium, you need to be a subscriber to The Wall Street Journal. The Daily Shot readers qualify for a special membership offer of $1 for 2 months and can join simply by clicking here.
If you are already a WSJ member, you can sign up for The Daily Shot at our Email Center by clicking here.
The Daily Shot Premium is also available online at DailyShotWSJ.com
If you have any issues at all, please contact a Customer Service representative by calling 1-800-JOURNAL (1-800-568-7625) or sending an email to email@example.com.
Thanks to Josh Marte (@joshdigga), Matt Garrett (@MattGarrett3), Joseph Cohen (@josephncohen), Ycharts.com, S&P Global, and Moody’s Investors Service for helping with the research for the Daily Shot.
We would also like to thank the Federal Reserve Bank of St. Louis for the incredible job they have done providing data and graphics to the public. Here is the credit and legal notice related to all FRED charts: FRED® Graphs ©Federal Reserve Bank of St. Louis. All rights reserved. All FRED® Graphs appear courtesy of Federal Reserve Bank of St. Louis. http://research.stlouisfed.org/fred2/
Contact the Daily Shot Editor: Editor@DailyShotLetter.com