Weekly Talking Points for Financial Advisors (2/19/24)

Read the highlights of this week's commentary from Helios:

• Headline prices rose 3.1% y/y and 0.3% m/m. The y/y increase was 0.3% lower than December's 3.4% but above expectations of a slowdown to 2.9%. Core prices, which exclude volatile food and energy costs, rose 3.9% y/y and 0.4% m/m. The y/y increases were unchanged from December though the m/m was a slight acceleration from 0.3% in December. The report has further fueled shifting expectations around when the Fed will begin rate cuts, previously expected in March, now are being pushed out to the summer.
• Retail sales in January surprised on the downside by falling 0.8% versus an expected 0.2% drop. It was the biggest drop in almost a year and December's report was revised downward to 0.4%, from 0.6%.
• Consumer Sentiment continued to increase in the preliminary February numbers from the University of Michigan after a huge jump in January's numbers. January's huge job gains helped play a role, but also short-term inflation expectations increased a bit while longer-term expectations stayed steady.

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