On Friday at 10am Eastern, Federal Reserve Chairman Jerome Powell will be speaking at the Jackson Hole Economic Symposium. This speech will be closely watched by investors for indicators on how much the Fed might raise interest rates by at the next Fed Meeting in September, as well as how long those interest rates will need to remain elevated, and how much quantitative tightening the Fed might do as well. This will be a major mover for the stock market on Friday, and this major stock market catalyst could set the direction of the entire stock market for the next 4 weeks. This video also covers the earnings that are coming out this week, as well as some major stock market news from Tesla, and how that news could accept the Tesla share price.
Hi guys it’s stock curry and there is a major event happening on friday that can set the direction of the markets for the next couple of weeks in today’s video i’m gonna go through all of the earnings coming out this week and let you know what’s happening on friday so let’s get into it on friday fed chair jerome powell is speaking at the jackson hole conference the
Jackson hole economic symposium is an annual symposium sponsored by the federal bank of kansas city in which participants include prominent central bankers and finance ministers from all over the world as well as economic luminaries and leading financial market players federal reserve chair jerome powell will address the annual global central banking conference in
Jackson hole on friday august 26th at 10 a.m eastern time starting about one and a half hours after the market opens this is a highly anticipated speech that could signal how high u.s borrowing costs might go that’s how much the fed might raise interest rates as well as how long they will need to stay at those elevated rates in order to bring down soaring inflation
Now the reason this meeting is so important is because the next fed meeting is on september 20th and 21st or about one month away and that is the next meeting where the fed might raise interest rates once again so far the fed has not given us any clear indication on how much they might raise interest rates by so we really are going to be watching jerome powell’s
Speech on friday at jackson hole to try to get some indication about how the fed feels about the overall economy in the united states how much the fed might raise interest rates by and how much quantitative tightening they plan on doing in order to bring up interest rates on mortgages and federal reserve notes now there is one other thing that we really need to
Listen to jerome powell’s speech for and that is a possible wage growth spiral wages are now the hottest inflation signal the problem is that both wage growth and job conditions remain strong but there are some signs that the labor market is softening but wages are not the worst case scenario is a wage growth spiral that some economists have been fearing since
Inflation started taking hold last october a wage growth spiral can trigger hyper inflation much like we saw in turkey venezuela and zimbabwe it could absolutely destroy the u.s economy the problem is as wages go up that causes more buying power for u.s consumers they in turn spin more which rises prices some more causing more inflation on the buying side that
In turn causes prices to go up on the wage side the higher wages cause more buying power inflation that buying inflation causes more wage growth inflation and the wage and inflation the wage growth inflation it becomes a spiral spirals out of control and ends up in hyperinflation and this is the thing the fed is very very concerned about even before the latest
Monthly jobs report the economic cost index which the central bank monitors closely showed a quarterly spike of 1.3 percent however it also showed wages rising by 1.4 percent meaning wages are going up faster than inflation and that wage data freaked everyone out at the fed they turned conscious of a wage growth spiral and that really impacted them it threatened
Them it got them on edge the wage growth and owner’s equivalent rent inflation that is rents going up and wages going up are the two factors that rupert says are really scaring the heck out of the fed right now even as other inflation data is moving in the right direction that’s because wages and rent are more sticky than other inflation indicators which tend to
Be volatile such as food and energy so essentially what’s happening here is that we are seeing supply side issues get fixed because the fed is raising interest rates and that is bringing down the overall inflation rates in the united states we had a zero percent month month-over-month inflation in july and that was still 8.8 percent year-over-year but with the
Fact that it was 0.0 percent month-over-month that was the first time we did not get an increase in inflation month over month so clearly that side of things is getting better however if rents and wages continue to rise and go up it could overshadow the decreasing rate of inflation on all of the goods and services that we buy and what could end up happening is
As wages and rents continue to rise it could cause all of the other things that are in the cpi or consumer price index to start rising once again because the items in the consumer price index are very volatile they swing up and down like crazy they don’t really go in any sort of straight line but rents and wages do when those start going up they tend to go up for
A long time they’re much much harder to get under control so the fact is the fed is saying look we’re seeing a little bit of success on the consumer purchasing side but the wages and rents are starting to get out of control and if we don’t get those under control fast we are going to have hyper inflation on our hands and it is going to destroy the u.s economy
There are fears that if the fed starts looking at a wage growth spiral as a real threat right now they’re not they’re kind of monitoring the data they’re trying to see if there’s some consistency to the data if they start to see some consistency to the data and they start to see a wage growth spiral start to take effect and gain a stronghold the fed is going
To be forced to do an emergency rate cut or at the very least a significantly higher rate cut than the market is currently pricing in sorry not a rate cut a rate increase so right now the market is pricing in about a 60 chance of a 50 basis point rate increase at their september meeting in about a month if the fed starts looking at a wage growth spiral a little
More deeper and they truly get concerned about that we could see that rate increase in september hit a hundred basis points or more so we really have to listen to the fed speech on friday to understand what jerome powell is truly concerned about at this time and how much he really thinks that he needs to raise interest rates by in order to get inflation under
Control and also prevent a wage growth spiral long story short we could quite possibly be facing our worst nightmare scenario now so far nobody is truly concerned about that but we are seeing the very beginnings of economic data showing that it might be a possible issue a few months down the road so this is just something new that we’re going to have to keep
Our eyes out on as we go through these next couple of months all right the next thing we’re going to do is talk about some news out of tesla that i think is going to be really bullish for tesla stock on monday elon musk says tesla will hike the price of full self driving by 25 in september fsd currently cost 12 000 and they are increasing the price to 15 000
This is going to have the effect of increasing tesla’s revenue and profits and that could be a significant boost for the stock price on monday now let’s talk about the earnings that are coming out this week and while we don’t have any major earnings that could move the market overall we do have a lot of companies that retail investors invest in that you’re going to
Want to know about first of all monday after the close we have zoom and then tuesday before the open we have macy’s x paying jd and dix now these are some chinese companies we’ll see what’s going on obviously there’s a lot of fear about chinese companies being delisted right now so even if x paying and jd report good earnings i don’t know if their stocks would
Necessarily go up that much but macy’s and dicks are two retailers and retail stocks have really been beat down so i don’t think monday after the close and tuesday before the open is going to be good for the market and it could cause the market to come down a little bit on tuesday now getting into tuesday after the close we have intuit and nordstrom as well as
Toll brothers and then before the open on wednesday we have petco as well as a few banks and then wednesday after the close we got nvidia that’s a huge one we also have salesforce and snowflake so when it comes to earnings at least for retail investors wednesday after the close is going to be huge with three major companies that retail investors invest in nvidia
Salesforce and snowflake so keep your eyes out for those it could have major implications for the nasdaq and the russell 2000 on thursday now thursday before the open we also have peloton dollar tree and dollar general peloton obviously has been through significant difficulties lately i don’t think they’re going to have good earnings now dollar tree and dollar
General very interesting because normally during every session you will see the low cost retailers really rise in profit so we’re really gonna have to watch dollar tree and dollar general to see if their profits are rising with everybody strapped for cash due to inflation and layoffs then thursday after the close we’ve got a firm marvel ulta beauty dell i mean i
Talked about ulta being a significantly undervalued stock i don’t normally like to play earnings but i don’t know i might buy ulta going into earnings this could be a good one i do think that they’re probably going to report good earnings just because of how many people have been buying beauty products lately so another huge earnings weeks for us retail investors
Again nothing that’s going to move the markets in a major way but certainly a lot of trades can be made and money can be made off of these earnings this week all right that’s what we’ve got for earnings now if you missed the video i uploaded on saturday we have officially kickstarted the millionaire club challenge i have five stocks that i bought in the value stock
Investing portfolio all five of these stocks have pe ratios that are less than five so make sure you go watch that video i uploaded saturday so you can find out what those five stocks are and why i bought those five stocks with p e ratios below five also if you want to know everything else that i’m buying and selling and what trades i’m going to be making this
Week as we lead up to jackson hole you can follow me on my vip discord where i post all of my trades as well as the reasons why i’m buying and selling you can sign up for that vip discord at stockcurry.vip slash get vip that’s stock curry.vip let’s get vip i also wanted to let you know that you only have a few days left to sign up for weeble and moomoo and get
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Transcribed from video
MAJOR STOCK MARKET CATALYST FRIDAY – Fed Speech from Jerome Powell at Jackson Hole – Mon, Aug 22, 22 By Stock Curry – We Profit Day and Night
