US Labor Data - Let the rate cuts begin!
In August, the US economy added 142,000 jobs
(below the expected 165,000), but unemployment fell to 4.2% (from 4.3% in July), signaling resilience. Wage growth rose by 3.8% YoY, up from 3.6%, hinting at inflationary pressures.
$O (-2.72%)
$WPC (-0.79%)
$VICI (-1.81%)
$ADC (-2.38%)
$NNN (-2.41%)
$PLD (+0.18%)
$TMF
⚠️US-PCE inflation report for January 2024:
📈 Immediate reaction:
✨ Core PCE prices rise:
The Fed's preferred inflation indicator, US Core PCE prices, rose 2.8% Y/Y, in line with expectations and slowing from 2.9% in December. This is the lowest annual reading since March 2021.
📉 Headline PCE inflation:
Increase of 2.4% Y/Y, hits estimates, following a 2.6% rise in December. This is also the lowest level since March 2021.
🔢 Monthly changes:
US PCE prices rose 0.3% M/M, in line with estimates. US Core PCE prices also increased by 0.4% M/M, in line with expectations.
🔑 Main finding:
The slowdown in core PCE inflation is good news for the Federal Reserve.
🚀 However...
...US inflation continues to rise much faster than the Fed's target of 2%.
🧐 Core inflation remains stubborn:
It is likely to remain well above the Fed's target for the foreseeable future. The Fed's fight against inflation is therefore far from over.
💡 Perspective:
Contrary to market expectations of a rate cut in June, I believe a cut is unlikely to come until late Q3 as inflation is taking longer than hoped to return to the Fed's 2% target.
Source:
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Digression:
Headline PCE inflation captures all categories of personal spending by measuring the average price change for all goods and services purchased by consumers for consumption purposes. This comprehensive view makes it an important indicator of overall inflation in the economy.
$VICI (-1.81%) an interesting point of view
The article also refers to $O (-2.72%) and $NNN (-2.41%) or used as a comparison
https://seekingalpha.com/article/4657284-a-deep-look-at-vici-properties
The price target is $43.96 and the stock is covered by 15 analysts.
Buy
5
Hold
8
Sell
2
NNN REIT, Inc. is a fully integrated real estate investment trust (REIT). The Company’s assets are primarily real estate assets. It acquires, owns, invests in and develops properties that are leased primarily to retail tenants under long-term net leases and are primarily held for investment (properties or property portfolio, or individually a property). It owns approximately 3,532 Properties with an aggregate gross leasable area of approximately 35,966,000 square feet, located in 49 states. The Company invests primarily in retail real estate that is located within each local market for its tenant's retail lines of trade. The Company’s portfolio includes convenience stores; automotive service; restaurants-full service; restaurants-limited service; family entertainment centers; health and fitness; theaters; recreational vehicle dealers, parts, and accessories; equipment rental; automotive parts; wholesale clubs; home improvement; drug stores; travel plazas; and furniture, among others.
