Get What You Want & Take What You Need - Kuby's Commentary 04.12.2021

Investors continued getting what they want, as well as what they need, despite some storm clouds forming on the horizon. Stocks rallied to close once again at record levels Friday, with the S&P 500 topping 4,100, as investors ignored concerns about inflation even while March core producer prices (PPI), which excludes the more short-term volatile food and energy components of the economy, increased by the most in more than nine years on an annualized basis. On the economic data front, first-time claims for unemployment insurance totaled 744,000, well above the expectation for 694,000 from economists. Continuing claims provided some good news on the labor front, with the total dropping to its lowest level since March 21, 2020. Earnings season begins with 23 S&P 500 companies, including most of the largest banks, on deck to report results. The bar is set pretty high, as the S&P 500 is expected to report (year-over-year) earnings growth of 24.5% for the first quarter.