June 24, 2021

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Jobs, Inflation, and Memes Get Updated Data This Week: Morning Brief

Jobs, Inflation, and Memes Get Updated Data This Week: Morning Brief

Julie Hyman, Myles Udland and Brian Sozzi of Yahoo Finance discuss the May employment report, inflation and memes.
Yes, we know, it’s already Tuesday.

But a really interesting week for economic data and corporate news has just begun.

Later this morning we will kick off three consecutive days of data that will offer updates on the biggest debates going on in the market right now: the upturn in the job market, inflationary pressures, and meme actions.

In a way, all of these topics can be linked to something like: Do people make so much money trading meme stocks for their stimulus controls that they don’t need to get back to work? And so on and so on.

But each of these debates can also be quite detached from what the latest data tells us is or isn’t happening. Labor, prices and the social role of markets are financial as well as political issues. And each of them attempts an answer as to what we should do with our time and how we should be compensated for it.

Fortunately, the next three days offer us data, not opinions, on developments along each front. Philosophical debates can resume in a week.

Thursday morning’s inflation reading for May will likely be the biggest market move.

The Consumer Price Index for May is expected to rise 4.7% from last year, the highest since 2008. On a “core” basis, which excludes the more volatile cost of food and gas and is preferred by politicians, prices are expected to rise by 3.4%. This print would be the hottest annual base inflation reading since the early 1990s.

As Yahoo Finance’s Emily McCormick previewed all of this week’s economic data, Wall Street economists see inflation as a “secondary” concern compared to talking about the Fed’s withdrawal on its bond buying program. But as we wrote in the Morning Brief last month, investors seem to be getting impatient with the Fed’s insistence that inflationary pressures will be transient. An impatience that has grown after just a month of hotter-than-expected inflation. A second consecutive month of higher-than-expected inflation would only add to this debate.