Datasets:

MAPAi

/

Inflation_News_Sentiment_Analysis

like 0

Follow

MAPAi 3

If you have a good appetite for risk then you can ratchet up to 3X shorts like [[TMV]] and [[SBND]]. (aka sovereign debt crisis) Quantitative Easing Part 2 (QE2) policies that have many critics and many potentially harmful unintended consequences like dollar devaluation, currency war, rampant inflation etc. Just make sure the holdings of the fund focuses more on the big money center banks and doesn't really include much in the way of insurance companies or credit card firms.

SPDR Barclays Capital TIPS (NYSEArca: IPE ) Max Chen contributed to this article. The iShares Barclays TIPS Bond Fund (NYSEArca: TIP ) has become the seventh-largest ETF in the United States, with just more than $20 billion in assets, and the fund pulled in $4 billion during 2009 alone, observes Paul Amery for IndexUniverse . Investors of TIPS-related ETFs are betting on high inflation hitting our economy soon.

SPDR Gold Shares GLD As the greenback has remained subdued, gold may get back its shine. Click to get this free report GOLD (LONDON P (GLD): ETF Research Reports ISHARS-EMG MKT (EEM): ETF Research Reports SPDR-INDU SELS (XLI): ETF Research Reports PWRSH-K HDY FP (KBWD): ETF Research Reports REALT-DVCN DDF (DFND): ETF Research Reports VANECK-MS WD MT (MOAT): ETF Research Reports To read this article on Zacks.com click here. U.S. stock indexes started February on a faltering note, as fears of a pick-up in inflation and rising bond yields raised volatility on Wall Street.

In economic news, the Consumer Price Index for All Urban Consumers increased 0.3 percent in June on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported. Over the last 12 months, the all items index increased 2.1 percent before seasonal adjustment. In contrast to the broad-based increase last month, the June seasonally adjusted increase in the all items index was primarily driven by the gasoline index.

Chicken prices rose, labor inflation continued and restaurant operating costs continued to grow with the store base. Marcato believed that was wrong, and emphasized a franchise-heavy restaurant base to grow margins and open more locations at lower costs. Increased promotional activity drove the cost of sales 170 basis points higher.

Today's calendar focuses on housing and inflation, but the Federal Reserve remains a dominant theme. Higher numbers could be interpreted bearishly because it might increase the case for the Fed to halt quantitative easing--a major question tomorrow when the central bank announces interest rates and holds a press conference in the afternoon. Housing starts are expected to increase at an annualized pace of 950,000, up from 853,000 in April.

After all, U.S. inflation and commodity prices are rising (read: TIPS ETFs Worth Buying as Inflation Rises? ETF Impact All the three retail ETFs - SPDR S&P Retail ETF ( XRT ), Market Vectors Retail ETF ( RTH ) and PowerShares Dynamic Retail Portfolio ( PMR ) - closed in the negative following the retail sales data. Click to get this free report SPDR-SP RET ETF (XRT): ETF Research Reports MKT VEC-RETAIL (RTH): ETF Research Reports PWRSH-DYN RETL (PMR): ETF Research Reports MACYS INC (M): Free Stock Analysis Report To read this article on Zacks.com click here.

Check out the PowerShares DB Gold Double Short ETN (NYSE: DZZ ) , which moves in the opposite direction of gold prices. We spelled out those concerns in this article, and thoughthe Fed 's bold $1 trillion move hasn't led to ruinousinflation just yet, many inflation hawks have been loading up on gold and silver -- just in case. Action to Take --> These ETFs provide exposure to the metals and the miners and typically carry expense loads that are far lower thanmutual funds focused on thisasset class .

The SPDR S&P Metals and Miners ETF ( XME ) fell more than 80% from the 2011 high to start the year. XME's dividends have been falling since 2014. The SPDR ETF has rebounded 130% this year on faster economic growth in the U.S. and the prospect for higher inflation to prop up prices of real assets.

Ashland Global Holdings Inc.ASH is set to hike the prices of maleic anhydride sold in North America up to 6 cents per pound. Ashland stated that the move is driven by limited supplies and high demand for maleic anhydride as well as raw material cost inflation. Ashland reported net profit of $73 million or $1.15 per share in second-quarter fiscal 2018 compared with net income of $92 million or $1.47.

Nokia ( NOK ) and Microsoft ( MSFT ) are said to be close to announcing a software partnership, Bloomberg reports. Stocks are mixed at mid-session as investors digest yet another stream of earnings news--most notably from Cisco Systems ( CSCO )--while jobless claims figures declined to a two-and-a-half-year low. Some economists thought a surprise rate hike couldn't be entirely ruled out given recent comments and signs of rekindling inflation risks, even as growth remains tepid.

The Global X China Materials ETF (NYSEArca:CHIM) and the Global X China Energy ETF (NYSEArca:CHIE) are ETFs to watch if this scenario plays out. For those interested in hedge-fund replication strategies, a number of ETFs are on the market to help calm investors’ nerves and lower daily price swings. If inflation continues to increase in 2011 and the government intervenes as it has done in the past, the biggest losers will be Chinese consumers.

As a result, both principal amount and interest payments will keep on rising with increasing consumer prices (read: Forget Inflation Fears with These TIPS ETFs ). Party Time for TIPS ETFs? TIPS offers robust real returns during inflationary periods, unlike its unprotected peers in the fixed-income world.

Earnings news also supported much of the price action on another day of subdued volumes, with Tiffany & Co. ( TIF ), Ralph Lauren ( RL ) and Lowe's ( LOW ) all leading the S&P 500. Wall Street recovered losses made on geopolitical worries after dovish Federal Reserve minutes offered upbeat comments on the U.S. economy and signalled a willingness to live with inflation temporarily overshooting its 2% goal. The Dow Jones Industrial Average lagged with a plunge in General Electric ( GE ) constraining the blue-chip measure.

But with student lending soaring, SLM ( quote ) got a small bid today, and in theory a lot of that money could trickle out into the broader economy as the tuition checks clear. The new U.S. consumer credit numbers reflect an economy that is reaccelerating, and that is very bullish for growth -- as well as inflation. All in all, U.S. household credit surged by $7.62 billion in February, ramping up faster than at any other time since June 2008.

We believed ZION was uniquely situated to take advantage of a growing number of the potential changes that were expected to play themselves out in the U.S. economy and stock market this year. We believed the Trump administration could bolster ZION by: Scaling back, or fully repealing, the Dodd-Frank Wall Street Reform and Consumer Protection Act; Boosting inflation expectations; Relaxing environmental regulations for drilling while OPEC caps oil production; and Lowering corporate tax rates. John Jagerson and Wade Hansen's pick for the contest is Zions Bancorp (NASDAQ:ZION).

The share price ofiShares Barclays 20+ Year Treasury ETF ( TLT ) -- which mainly holds 25-year bonds -- tumbled 11.4% from its 52-week high from July 25. ProShares Short 20+ Year Treasury ETF ( TBF ), designed to move opposite TLT, rises along with interest rates. The market faces "an impending rise in interest rates" as the economy improves and inflation heats up in 2014, says Jason Schenker, president of Austin-based Prestige Economics.

Yen And Swiss Franc The Rydex CurrencyShares Japanese Yen ETF (NYSEArca:FXY) gained 2.5 percent in the last two weeks, and the Rydex CurrencyShares Swiss Franc ETF (NYSEArca:FXF) did even better, with a 5 percent gain. While the Swiss franc and the yen could be considered safe havens within the currency market, the euro and British pound are outperforming for a different reason. As the Federal Reserve appears to be OK with the scenario of low interest rates for the foreseeable future-even at the risk of high inflation-European policymakers are suggesting they're going in a different direction.

We should recall that Sogou's TAC accounted for 78% of its cost of revenues during the quarter, which doesn't leave it much room to develop new hardware products. Sogou's growth in search revenue looks decent, but its traffic acquisition costs (TAC) surged 58% annually to $135 million (49% of its revenue) due to price inflation and tougher competition. Sogou's TAC stayed roughly flat from the second quarter , but its total number of advertisers slipped 2% sequentially to 81,000 as its average revenue per advertiser fell 6% to $2,600.

Therefore, if investors can manage short-term hiccups in Treasury yields and digest the rate hike issue, the strengthening of the REIT industry will likely ensure solid long-term gains. This is because fiscal stimulus like tax reduction and infrastructure spending boost demand, fuel economic growth and push up inflation. Currently, stocks like Armada Hoffler Properties, Inc. AHH , Urban Edge Properties UE , Mack-Cali Realty Corp. CLI and Preferred Apartment Communities, Inc. APTS enjoy a Zacks Rank #2 (Buy).

The Bank of Japan left its monetary easing program on hold, stating that it stood ready to defend its 2% inflation goal if necessary. The survey is closely watched by economists because it typically reflects the true underlying strengths or weaknesses in the labor market. However, because of the slow rate of price growth, economists took this as a sign that the central bank would move to further defend its inflation target, potentially enlarging its expansion of the monetary base and pushing back the date of its inflation target from 2015 to 2016.

Another theme worth exploring for investors is rising food prices, and the Market Vectors Agribusiness ETF (NYSEArca:MOO) is a good mousetrap for taking advantage of the trend. Many companies MOO invests in are part of the solution, as they focus on ways of increasing food supplies with genetically altered seeds and pesticides. But now that the probability of a double-dip has subsided, I think there are good reasons to be in stocks, and I'll try to make the case for reluctant investors to move at least some of their money out of cash and into equities next year.

By Sheyna Steiner for Bankrate.com The European Central Bank announced a new effort to stimulate inflation in the Eurozone and further weaken the currency: quantitative easing, or QE. Combined with asset purchases begun last year, the ECB will be buying 60 billion euros worth of securities each month until at least September 2016. With scarce demands for loans and reluctance on the part of banks to lend money, traditional levers of monetary policy, namely interest rates, have little impact.

Wabash National 's (NYSE: WNC) most recent earnings report is a shining example of two strong and opposing market forces crashing head-on with each other: tariffs and a booming trucking industry. WNC data by YCharts. What management had to say In his first quarter as Chief Executive Officer after taking the reigns back in June, Brent Yeagy highlighted how strong demand and cost inflation were pulling the business in opposite directions.

For investors looking for something more leveraged, there are instruments like the Direxion Daily Gold Miners Bull 3X ETF (NYSEARCA: NUGT ) and the Direxion Daily Gold Miners Bear 3X ETF (NYSEARCA: DUST ). Yet right now, a great number of clues suggest that KGC stock has become a popular name and is en- route to higher highs, leaving it well-positioned to lead miners' rebound. That dramatic change, for the record, was sparked by a combination of rebounding gold prices, the weakness of the U.S. dollar and the presumption that inflation in the United States hadn't been tamed.

In fact, fiscal stimulus like tax reduction and infrastructure spending drive demand, fuel economic growth and push up inflation and amid all this, the fundamentals of the real estate industry also get a boost. So if investors can manage short-term hiccups in treasury yields and digest the rate hike issue, the strengthening of the REIT industry will likely ensure solid long-term gains. So companies having a portfolio that is diversified both in terms of geography and price points have the scope to enjoy relatively stable revenues.

Leading net-lease retail real estate investment trust Realty Income Corporation (NYSE: O) performed extremely well in 2016 -- until August. Unemployment hit a record low in late 2016, and GDP growth and inflation data pointed toward a Federal Reserve rate hike and the expectation of a rising-rate environment for the next few years. The point is that while Realty Income's stock price can fluctuate quite a lot over short periods of time, investors should feel confident from a long-term perspective.

Both currency-hedged ETFs - WisdomTree Japan Hedged Equity Fund (DXJ) and db-X MSCI Japan Currency-Hedged Equity Fund (DBJP) - have exhibited strong performances after the cabinet attempted to revive the economy through aggressive monetary easing. Investors should note that both DXJ and DBJP have posted solid gains of approximately 34.85% and 36.7%, respectively, over a period of six months. db-X MSCI Japan Currency-Hedged Equity Fund (DBJP) With the yen sliding, DBJP is also an interesting option to pick with the Japanese economy set to revive after four years of continuous recession and decades of deflation.

David White submits: The latest ramp up in US equities has been generated by speculation about positive Fed action (QE2). They may continue to go up in an inflation speculation driven rally, but a significant rise from current levels would likely preclude Fed QE2 action. Even an improvement in employment data (if not too great) could cause a down turn, as it might mean lowered expectations of or no QE2 action from the Fed.

However, we remain cautious on the stock based on cost inflation, lower consumer spending and intense competition from peers like Brinker International inc. ( EAT ) and Domino's Pizza Inc. (DPZ) with respect to price, service, location and concept in order to drive traffic. DOMINOS PIZZA (DPZ): Free Stock Analysis Report BRINKER INTL (EAT): Free Stock Analysis Report RED ROBIN GOURM (RRGB): Free Stock Analysis Report To read this article on Zacks.com click here. The guest count suffered due to the failure of its promotional activities and hefty discounting environment.

Spotify (NYSE: SPOT ) debuted after an unusual direct listing, gaining 13%, but falling roughly that amount from its intra-day high. The 10 Best Stocks to Buy for April While the S&P 500's bounce off of its 200-day average looks cute, headwinds remain, including Friday's non-farm payroll report sure to show more evidence of wage-push inflation. Watch for the selling pressure to continue on Wednesday, after China released its counter-tariffs to Trump's $50 billion worth of tariffs against the country for intellectual property violations.

A surprisingly high producer inflation report released early on Friday at one point had the S&P 500 in the hole to the tune of 1.6%. With falling stocks outpacing climbing stocks by nearly three to one, however, there just weren't enough stories like Disney's to lift the broad market out of the red. As the new trading week kicks off, it's the stock charts of Coca-Cola (NYSE: KO ), Mondelez International (NASDAQ: MDLZ ) and Ralph Lauren (NYSE: RL ) that may be holding the most potential for traders.

But policy planners are likely to stop the process of rate hikes before too long, unless it wants to expose the Chinese banking sector to the myriad risks presented by a sharp economic slowdown. These are the least-skilled jobs, and the goods made have a very large labor component, so this segment of theeconomy really competes with places like Mexico, the Caribbean, Central America and Southeast Asia. The reasons for risinginflation are pretty straightforward and can be explained by the notion of "capacity utilization."

By Scott Minerd : In Goethe's 1831 drama Faust , the devil persuades a bankrupt emperor to print and spend vast quantities of paper money as a short-term fix for his country's fiscal problems. As a result of multi-trillion dollar quantitative easing programs, central banks around the world have compromised their ability to control the money supply, making them vulnerable to runaway inflation. Investment Implications To hedge against deterioration in the dollar's purchasing power, investors have already begun migrating toward hard assets such as gold, commercial real estate, artwork, collectibles, and rare consumer products like fine wines.

And now, on to the numbers... Market Statistics Equity option activity on the Chicago Board Options Exchange ( CBOE ) saw 1,040,433 call contracts traded on Thursday, compared to 626,473 put contracts. Overseas Trading Stocks in Asia ended lower across the board today, pressured by reports showing disappointing U.S. jobs growth and rising Chinese inflation. While the smaller-than-forecast U.S. employment gain raised the prospect of additional accommodation from the U.S. Fed, China's fast-rising prices suggested that central bankers may have very little room to maneuver on monetary policy.

The analyst said that "expectations for 7-8% commodity inflation over the next 18 months will be a headwind to margin expansion; however, we view DRI as best able to defend margins with price increases, supply chain efficiencies, and real estate ownership." The Bottom Line Shares of Darden Restaurants ( DRI ) have a 2.60% dividend yield, based on last night's closing stock price of $49.30. Full-service restaurant operator Darden Restaurants, Inc. ( DRI ) on Friday saw its price target and earnings estimates raised by analysts at Susquehanna.

HNNMY, JNY and PVH are probably the first places to keep an eye on. Swedish boutique retailer H&M is getting pounded this morning in Europe after confessing that the cost of cotton is digging into its business. H&M, which trades fairly thinly in ADR form as HNNMY has investors worried that the rising cotton prices that depressed its fourth-quarter profit by 11% is only the first taste of inflation working its way into the apparel sector.

Discover Financial Services (DFS): Credit Services Industry. But other members are more worried about inflation risks which may prompt the Fed to tighten monetary policy sooner than expected. Moody’s warned that an unsatisfactory outcome to the debt ceiling talks may lead the agency not only to downgrade the US sovereign AAA but to also to put the US on a negative outlook for the future.

The Labor Department said a major factor in the advance by the index for final demand services was margins for apparel, jewelry, footwear, and accessories retailing, which rose 2.6 percent. On Wednesday, the Labor Department released a separate report showing U.S. consumer prices rose by slightly more than anticipated in the month of October. The Labor Department said its consumer price index climbed by 0.4 percent in October after coming in unchanged in September.

PulteGroup, Inc. (NYSE: PHM ) is up more than 30% year-to-date, while Lennar Corporation (NYSE: LEN ), William Lyon Homes (NYSE: WLH ) Toll Brothers Inc (NYSE: TOL ) and D.R. Economists were calling for an economic recession, home-builder activity dropped due to adverse weather conditions, mortgage rates rose as inflation expectations picked up and renting remained the Millennial fad. Home-builder stocks have roared higher in 2017 as interest rates have remained low, unemployment has contracted, wages have grown, builder confidence has soared and Millennials have started buying homes .

If prices rise, then companies like Coca-Cola (NYSE: KO ) , Anheuser-Busch InBev (NYSE: BUD ) and Procter & Gamble (NYSE: PG ) simply raise the prices of their own products. Asthe Fed pushes all of those bonds back into the market, many fear it will trigger an unwanted (though not unexpected) rise inbond yields and inflation. Even in a weak economic environment, these items can still rise in value as producers cut output to the point where historical processing profit levels are restored.

United States Copper Index Fund (CPER) The United States Copper Index Fund (NYSEARCA: CPER ) is an exchange-traded security that looks to track the price movements of the Summer Haven Copper Index Total Return. CPER issues units that may be purchased and sold on the NYSE Arca. Source: iStockphoto Among the latest data released, Chinese producer price inflation increased to 6.9% in September compared with the year-ago level, beating 6.3% growth in August and the 6.4% forecast by economists.

Ruffling feathers Wingstop went public in February, and has experienced the typical volatility associated with newly IPO'd stocks, but it's also had to contend with higher-than-normal commodity costs in its central ingredient, chicken wings. Wingstop's smaller footprint also insulates it from the costs imposed by wage inflation, a factor Buffalo Wild Wings notes will impact results going forward. Family-sized orders of chicken wings have helped propel Wingstop's growth.

Northern Trust Corp.NTRS is the holding company for its main subsidiary, Northern Trust Company, as well as a number of other banking and non-banking financial service subsidiaries. Click to get this free report NORTHERN TRUST (NTRS): Free Stock Analysis Report JMP GROUP INC (JMP): Free Stock Analysis Report HERITAGE INSUR (HRTG): Free Stock Analysis Report To read this article on Zacks.com click here. Buoyancy in the labor market and acceleration in inflation mean that the benchmark rate is likely to be raised this year, followed by further monetary tightening, Mester added.

"The names in the new Nifty 50 bucket include Amazon, Johnson & Johnson ( JNJ ), Merck ( MRK ), Nvidia (NVDA) and General Mills (GIS)." "Before Brexit, the (investment) world was almost back to normal," said Matthew Ward, co-manager of Schroder U.S. Large Cap Equity strategy, which is run as a separate account. "Brexit or not, we need to see excess capacity come out of the world manufacturing system and the return of some inflation so that companies can pass along price increases," Swanson said.

Inflation pressures are catching up with restaurant chains, and we explore how this might impact Chipotle's ( CMG ) expansion plans. See article Rising Food Costs Could Dampen Chipotle's Expansion Plans While Chipotle's ( CMG ) fresh, nutritious Mexican fare has many fans in the US, the company has also been consistently adding new restaurants and is looking at further expanding in Europe. SunPower (NASDAQ:SPWRA) recently lowered guidance following earnings adding to the slew of bad news in the solar sector.

The author is long Petrobras ( PBR ), Embraer ( ERJ ) and the Market Vectors Brazil Small-Cap ETF ( BRF ). Brazil's central bank plays a difficult game, balancing one of the world's most rapidly-appreciating currencies against the ever-present danger of inflation and the needs of an economy which must diversify beyond commodity production into other sectors. Thought it never reached Zimbabwe-like levels, the government was forced to raise interest rates many times, and had to experiment with several devaluations and currency shifts until former president Henrique Cardoso's Plano Real finally slayed the monetary beast.

Market Vectors Gold Miners ( GDX ) is down 0.16% to $61.21. Stocks are solidly lower at mid-day as investors react to a disappointing outlook from Cisco Systems ( CSCO ), renewed concerns over sovereign debt in Europe, which is pushing the dollar higher, and warning signs out of China about inflation. Investors are also eying the Group of 20 Summit in South Korea where world leaders are trying to develop plans to bolster a generally weaker global economy amid allegations of currency manipulation and widening trade gaps.

Higher inflation readings, a more hawkish Fed, and 3% Treasury yields have gotten investors nervous. The reason why is that there is a huge pile of short positons held by hedge funds who are betting against Treasuries. Yet, yields have been stubborn over the last couple of weeks and now it appears the positon might be broken by a strong short squeeze that would send prices higher.

Moreover, a number of companies including Ashland Global Holdings Inc. ASH and W. R. Grace & Co. GRA are taking aggressive price increase actions in the wake of raw material cost inflation. Positive October Readings The Washington, DC-based chemical industry trade group said yesterday that U.S. specialty chemicals market volumes rose 0.3% in October on a monthly comparison basis. Ashland Global Holdings Inc. Kentucky-based Ashland sports a Zacks Rank #1.

Companies such as Nike (NYSE: NKE ) , Coach (NYSE: COH ) and Tiffany (NYSE: TIF ) are just a few of the names that come to mind. Throw in the fact that prices for food and other commodities are starting to rise, and China'sinflation rate appears set to stay at 5% -- or trend higher -- as long as itseconomy is in growth mode. But policy planners are likely to stop the process of rate hikes before too long, unless it wants to expose the Chinese banking sector to the myriad risks presented by a sharp economic slowdown.

More From InvestorPlace 10 Stocks That Won't Exist in a Decade The 10 Best Cheap Stocks to Buy for $10 or Less Should You Buy The Coca-Cola Co (KO) Stock? The Cleveland-based iron ore company missed analyst estimates by a wide margin by reporting an 11 cent loss in earnings per share. Amid higher inflation expectations, not to mention a groundswell in investor optimism, the metals and mining space soared from last November to mid-February.

The catalysts driving yields higher are worries about the growing supply of government debt and inflationary pressures from rising oil prices . Gold traders also continued to react to solid economic data from earlier this week that indicates the economy is growing at a robust pace. Early in the trading day, prices were driven lower by a U.S. government report that showed an unexpected increase in U.S. crude oil and gasoline inventories.

Corp ( VFC ), and Eaton Corp ( ETN ). Maintaining historically low interest rates and bailing out people who can't afford their loans are a kind of slap in the face to responsible savers. The irony will be when the real estate market starts to show signs of life, but the Federal Reserve being behind the inflation curve needing to raise rates dramatically to soak up all the currency they printed.

ForClorox ( CLX ), it's cleaning up and moving on from unfavorable conditions in Venezuela. On Monday, the company announced it would shutter operations in the South American country and sell its assets. This month, Venezuela's central bank reported that its annual inflation rate surged to 63.4% in August.

The 10-year Treasury yield was higher at around 2.584%, pushing ETFs holding long government bonds such as iShares 7-10 Year Treasury Bond ( IEF ) and iShares 20+ Year Treasury Bond ( TLT ) lower. ETFs tracking major stock indexes were mixed on Friday amid data showing that groundbreaking on new homes fell sharply in November as the pace of construction slowed. "After Donald Trump's surprise win in the presidential election, and the Republicans maintained their majority in Congress, bonds sold off on expectations that higher growth and inflation are ahead."

Greenbrier Cos. (GBX) is up 3.1% to $50.86 after reporting fiscal second-quarter earnings. Hong Kong's Hang Seng and Singapore's Strait Times indexes actually rose 1% overnight, while Shanghai's SSE Composite and Tokyo's Nikkei were barely in the red. Probably more important, hourly earnings rose faster than expected, 0.3% compared with an anticipated 0.2%, amounting to annualized wage inflation of 2.7% - hardly compatible with a 2.8% yield on the 10-year Treasury note.

Another noteworthy redemption was the $1.62 billion that came out of the iShares MSCI Emerging Markets Index Fund (NYSEArca:EEM), as well as the nearly $1 billion that bled out of the Vanguard High Dividend Yield ETF (NYSEArca:VYM). VYM's redemptions, in particular, were interesting, as they amounted to a reversal of $1 billion in inflows last week. Investors plowed money into bond ETFs targeting Treasury inflation-protected securities in the past week in a sign of growing concern about mounting inflationary pressures as the U.S. economic recovery gains steam.

Nigeria is battling a contracting economy and surging inflation amid a rigid exchange rate environment. The largest economy of Africa's interest rate was kept unchanged at 14% in the March 20-21, 2017 MPC meet. The government has proposed cost reflective electricity tariffs and market-determined exchange rates.

Retailers held up well despite a huge earnings miss from Urban Outfitters ( URBN ). This is a problem for conservative investors who have remained on the sidelines, deciding to keep their money in low interest rate savings accounts or CD's. Increasing one's exposure to quality dividend-paying stocks that have consistently raised their dividend payouts is one way to cushion one's investment portfolio to the crushing blow of inflation over time.

In Frankfurt, Commerzbank and Deutsche Bank led the DAX sharply lower, falling 4.8% and 3.8% respectively, while financial services firm Allianz, and natural gas and electricity provider RWE were off 2.8% and 2.4%. The FTSE lost 0.47%, the DAX fell 1.52%, and the CAC-40 dropped 0.85%. Among the main components of euro area inflation, energy is expected to have the highest annual rate - 9.5%, compared with 9.2% in August - followed by food, alcohol & tobacco, services, and non-energy industrial goods.

The emerging world is experiencing both of these factors with faster economic growth leading to rising incomes as well as an increase in population. If I'm right about this new economic thesis, the continued rise in oil and gasoline prices should begin to show up in the prices paid component in the regional Fed and industry surveys. Eventually these price increases will be reflected in a slowdown in the LEIs.

Notably, many other food companies like General Mills GIS and Campbell Soup CPB are also battling input cost inflation. Click to get this free report General Mills, Inc. (GIS): Free Stock Analysis Report Campbell Soup Company (CPB): Free Stock Analysis Report Pinnacle Foods Inc. (PF): Free Stock Analysis Report Conagra Brands Inc. (CAG): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, strategic acquisitions like Angie's, Sandwich Bros, and Duke's and Bigs are fueling Conagra's operations and we expect these businesses to remain significant growth drivers.

Appliance maker Whirlpool (NYSE: WHR) is navigating a complicated environment. A strengthening U.S. dollar is knocking down international sales because of currency translation effects, inflation from raw materials and tariffs is pushing up costs, and weak industry demand in North America is creating challenges in the company's core market. A combination of stronger margins in North America and the impact of share buybacks pushed up Whirlpool's per-share earnings in the first quarter.

That is, with or without Shinzo Abe, Japan's sharply declining working-age population was always going to lead to a tight labor market, resulting in wage pressure and higher inflation. This risks a sharp spike in interest rates and a bond market rout, with investors fleeing amid concerns about the government's ability to repay its enormous debt load. Earlier this month, the BoJ held off from adopting more stimulus, citing a moderate economic recovery and progress towards its 2% inflation rate target (currently 1.3%).

By The Inflation Trader : Here is a collection of my post-CPI tweets and some additional thoughts: Looks like +0.09% on Core CPI - incredibly, rounded UP. If traders perceive a bigger swing in the CPI than is actually happening, it will represent an opportunity to get long breakevens or inflation swaps at lower-than-current levels. And if that's going to happen, then I think we'll hear Chairman Bernanke speak generously about the capabilities of monetary policy at the Jackson Hole conference, which begins August 30.

On the corporate front, British oil giant BP Plc ( BP ) will pay $7 billion Oklahoma's Devon Energy Corp.'s ( DVN ) assets in Brazil, the Gulf of Mexico, and Azerbaijan. Brent crude is down slightly in early morning trade Thursday, as worries about inflation in China increased concerns about global economic growth prospects. China's National Bureau of Statistics reported that inflationary pressure reached a 16-month high, as consumer prices rose 2.7% in February from a year ago, slightly above what most Wall Street analysts had been expecting.

Per the terms of the agreement, Barrick is required to bear the exploration expenditures worth $35 million over the next five years to acquire a 60% interest in the Orion Project. Barrick's experience and knowledge combined with ATAC's generative exploration skills will unlock full potential of Rackla Gold Property, located in the east-central district of Yukon. President Donald Trump's proposed tax cuts, deregulation and fiscal stimulus are likely to spur economic activity and trigger a rise in inflation, which could prompt the central bank to increase rates further in 2017.

3. iShares Barclays TIPS Bond Fund ( TIP ) vs. All Takers Following the unprecedented injections of liquidity into the global financial system in recent years, inflation has been on the minds of most investors. But most investors still expect prices to head higher at some point in the future, and they're clearly hoping that TIP will protect them from the ravages of inflation. iShares' EEM has historically been the default option for achieving emerging market exposure through ETFs, but VWO's remarkable growth in recent years has positioned the competing Vanguard product as a legitimate threat.

Improving consumer confidence, rising inflation and falling unemployment have heightened the speculation that Bank of England (BOE) could be the first major bank to tighten the stimulus and increase interest rates from a record low of 0.5%. The weakness in pay growth would compel BOE to delay the tightening until the British people can afford higher borrowing costs. According to the latest indicators from the Office for National Statistics, average weekly wage growth including bonus has declined from 1.9% (January-March) to 0.3% (March-May), the lowest since 2009.

Incyte (INCY) is down 20% to $65.70 and Merck (MRK) is down 1.1% to $53.91 after their melanoma treatment failed a late-stage trial. Hong Kong's Hang Seng and Singapore's Strait Times indexes actually rose 1% overnight, while Shanghai's SSE Composite and Tokyo's Nikkei were barely in the red. Probably more important, hourly earnings rose faster than expected, 0.3% compared with an anticipated 0.2%, amounting to annualized wage inflation of 2.7% - hardly compatible with a 2.8% yield on the 10-year Treasury note.

The boosters to both were more lending activity and higher interest rates, while the 9% drop in trading revenue took a sizable toll on the top and bottom lines. That broad uptrend heated up, in fact, in the latter part of 2017, when rising inflation finally forced the Fed to concede three to four interest rate increases were in the cards for the foreseeable future. When the average 30-year mortgage rate reaches 5%, a recent Redfin survey suggests that more than a fourth of people interested in buying a home would likely rethink their plans .

Other year-to-date returns for ETFs tracking countries with female leaders: iShares MSCI Australia Index Fund (NYSEARCA:EWA), though Julia Gillard was ousted Wednesday, down 8.7%. Global X FTSE Argentina 20 ETF (NYSEARCA:ARGT) Argentine President Cristina Fernandez de Kirchner is arguably to blame for much of her country's economic woes such as slowing growth, soaring inflation and an albeit diminished flirtation with a second sovereign debt default this century. Brazilian President Dilma Rousseff, once wildly popular, is dealing with one of the most stunning reversals in recent memory of an emerging market going from darling to devil in short order.

Source: Shutterstock United States Oil Fund LP (USO) As well as energy and oil stocks do during the latter part of economic expansions marked by an inverted yield curve, oil itself does even better. The United States Oil Fund LP (NYSEARCA: USO ), which is a proxy for oil prices, may be a better fit for most investors. Upfina qualifies its finding, explaining that these stocks tend to do well in that scenario "because inflation usually increases at the end of the cycle, meaning oil prices are going up along with the other commodities."

( BP ), Chevron Corp. ( CVX ) and ConocoPhillips ( COP ). Some US senators are proposing to repeal about US$2B in annual tax breaks given to Exxon Mobil Corp.( XOM ), Royal Dutch Shell PLC. Oil & Gas companies have warned that gasoline prices will climb even higher and energy production in the US will drop if the tax incentives are removed.

Read on to learn why our panel of writers identified JPMorgan Chase (NYSE: JPM) , Brookfield Infrastructure Partners (NYSE: BIP) , and PepsiCo (NYSE: PEP) as investments that could help you keep ahead of the depreciation curve. This has led to strong share price and dividend growth since its IPO: BIP data by YCharts . With the U.S. Department of Labor reporting that consumer prices over the last 12-month period have climbed at their fastest rate in five years (up 2.7%), it's a good time to think about stocks that are well-tuned for beating inflation.

If you own long-term bonds, such as 30-year U.S. Treasuries, you could see their prices fall dramatically as yields rise to keep pace with inflationary expectations. These funds buy pieces of loans made by major banks such as JP Morgan (NYSE: JPM ) to large corporate borrowers. Action to Take --> If you invest now, then you might be able to earn a nice capital gain in addition to a high yield and added safety from inflation.

The markets’ recent volatility has contributed to the XLU’s gain, as investors flee toward any safe haven. The theory regarding utility stocks was simple: Robust economic growth coupled with a full labor market was supposed to spark rising inflation. Utility stocks, which were long viewed as bond substitutes in an era of ultra-low interest rates, were supposed to fall.

Polling suggests most Americans don't believe they will personally benefit from the tax cut; leaving room for positive surprises as they notice a boost in their weekly, bi-weekly or monthly paychecks. Yet with the economy already operating above full potential and with the labor market extremely tight, this fiscal stimulus package is likely to boost inflation more than growth according to Capital Economics. Anthony Mirhaydari is the founder of theEdge(ETFs) andEdge Pro(Options) investment advisory newsletters.Free two- and four-week trial offers have been extended to InvestorPlace readers.

Right now, we are bearish on INFY, SLT and RDY — more losses are in store for these companies, which are still fairly richly valued. This is a political hot button that may drive Delhi to adopt non-market-friendly policies as it tries to fight the trend. Food is not just a huge component in overall wholesale inflation of 8.4% — which would ordinarily be alarming in itself — but the key to the entire political set-up.

The Buckle Inc. (BKE) It is a leading retailer. Click to get this free report Facebook, Inc. (FB): Free Stock Analysis Report Syntel, Inc. (SYNT): Free Stock Analysis Report Cheniere Energy Partners LP Holdings, LLC (CQH): Free Stock Analysis Report Buckle, Inc. (The) (BKE): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report To read this article on Zacks.com click here. There is more to come on the inflation front as President Trump enacted import tariffs on China and many other countries on a wide array of goods, including key metals like aluminum and steel.

The author is long Petrobras ( PBR ), Embraer ( ERJ ) and the Market Vectors Brazil Small-Cap ETF ( BRF ). Brazil's central bank plays a difficult game, balancing one of the world's most rapidly-appreciating currencies against the ever-present danger of inflation and the needs of an economy which must diversify beyond commodity production into other sectors. Thought it never reached Zimbabwe-like levels, the government was forced to raise interest rates many times, and had to experiment with several devaluations and currency shifts until former president Henrique Cardoso's Plano Real finally slayed the monetary beast.

Pearson ( PSO ) said it has agreed the sale of The Mergermarket Group to funds advised by BC Partners for an enterprise value of GBP382 million ($620 million), payable in cash. European shares were narrowly mixed, with German stocks just edging out a gain despite weak retail sales. Also, the annual rate of inflation in the eurozone rose to 0.9% from 0.7% in October, the European Union's statistics office said in a preliminary estimate today.

Today's move should keep the real and real-based funds like EWZ restrained tomorrow: And watch Brazil ahead of the weekend's G20 summit. Given Brazil's history of hyperinflation, monetary policy makers have an unusually loose target for inflation and are content to see prices climb at an annualized rate of 2.5% to 6.5%. While Brazilian officials will not attend, they may announce new measures designed to weaken the real as the currency wars enter a new phase with China'srate hike.

As the economy expands and inflation expectations rise, investors have looked into a number of usual suspects to maintain their purchasing power, but an infrastructure sector-related ETF often falls under the radar. For example, investors can take a look at something like the FlexShares STOXX Global Broad Infrastructure Index Fund (NYSEArca: NFRA) to gain expsoure [...] Read more on ETFtrends.com. This article was provided by our partner Tom Lydon of etftrends.com.

Investors turned their attention to Fed news and economic data on Wednesday, driving up U.S. Treasury yields in the process. On Wednesday, U.S. government debt yields rose after the release of key U.S. economic data, including the Federal Reserve's Beige Book. Fed officials also said they still expect labor and material bottlenecks to spur inflation higher, but the Beige Book doesn't find much evidence.

As the economy expands and inflation ticks up, investors will have to keep in mind the negative effects of rising prices and maybe look to hard-asset related investments and exchange traded funds to help maintain the purchasing power of their portfolios. "Exposure to natural resources/commodities offers the potential advantage of offsetting some of the longer-term… Click to read more at ETFtrends.com. This article was provided by our partner Tom Lydon of etftrends.com.

Apogee, along with other players in the same industry , such as Caterpillar Inc. CAT , Terex Corporation TEX and TriMas Corporation TRS , are expected to bear the brunt of tariffs. Click to get this free report Apogee Enterprises, Inc. (APOG): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Terex Corporation (TEX): Free Stock Analysis Report TriMas Corporation (TRS): Free Stock Analysis Report To read this article on Zacks.com click here. The company's performance will be thwarted by a lower guidance, concerns in the Architectural Glass segment, margin woes and inflationary pressures resulting from tariffs.

(+) MRCS Oracle ( ORCL ) reportedly in deal to buy Micros Systems. Stocks were losing traction and drifting back between small losses and gains Tuesday after Wall Street was spooked by recent inflation and housing market data. Expectations the Federal Open Markets Committee will retain its bullish outlook on the U.S. economy also is working to keep losses today to a minimum Consumer prices rose 0.4% which was twice analysts' consensus.

Horton ( DHI ) missed estimates on both the top and bottom lines. Major stock-index ETFs closed higher after a slow start Tuesday as voters and investors await the outcome of the Nov. 8 presidential election. "Some investors may think inflation is around the corner and are responding to new signals from the Fed about an increase in short-term interest rates," said Matt Tucker, head of iShares fixed income strategy for the Americas.

Nokia ( NOK ) and Microsoft ( MSFT ) are said to be close to announcing a software partnership, Bloomberg reports. Stocks are mixed at mid-session as investors digest yet another stream of earnings news--most notably from Cisco Systems ( CSCO )--while jobless claims figures declined to a two-and-a-half-year low. Some economists thought a surprise rate hike couldn't be entirely ruled out given recent comments and signs of rekindling inflation risks, even as growth remains tepid.

And while the most recent data shows that inflation remains below the Fed's 2% target rate -- it came in at 1.6% in October -- the trend in consumer prices is heading in the right direction as well. This is the variable, in turn, that investors in JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup should watch most closely. The higher inflation goes, the more likely the Fed is to raise rates and thereby boost the amount of money that each of these banks earns from their multibillion-dollar portfolios of loans and securities.

PG & E Corp. (PCG): Diversified Utilities Industry. What we know is that economic recovery has faltered, that the US’s fiscal situation is concerning and that Eurozone debt woes are increasingly alarming. But other members are more worried about inflation risks which may prompt the Fed to tighten monetary policy sooner than expected.

Action Economics ( AE ) said Federal Open Market Committee resumed its meeting, the first under Chairman Powell. AE is forecasting no change to either this year's or next year's median dots, though it does suspect the mean could move up slightly as policymakers boost growth outlooks and tweak the inflation view slightly higher, and lower the unemployment rate forecasts. AE also expects the FOMC to maintain the neutral rate view at 2.75%.

By contrast,iShares MSCI EAFE Index ( EFA ), tracking developed foreign markets, andiShares MSCI Emerging Markets Index ( EEM ) ended nearly flat. Japan ETFs defied global stock market weakness Wednesday, surging to new highs after the country's central bank governor unexpectedly announced he would resign before his term ends. Abe has asked the BOJ to undergo unlimited easing policies to devalue the currency, invigorate exports and fan inflation.

European markets were mostly lower with indices weighed down by poor results from Germany's Deutsche Bank ( DB ) and on disappointing phase 2 test results for a lung cancer treatment being developed by AstraZeneca (AZN). Wall Street set new records at Thursday's open as strong Q2 results coupled with the Federal Reserve's inclination to remain cautious while inflation gains traction fueled investor's appetite for risk. In earnings news, Facebook grabbed headlines with a strong Q2, while Twitter ( TWTR ) shares were drowning in negative territory after beating Wall Street's expectations, but reporting sluggish user growth.

And that's why just like QE1 and QE2, the launch of QE3 has encouraged droves of investors to stockpile part of their wealth in gold and other hard assets like oil, timber, copper, andreal estate ... anything but depreciating greenbacks. With QE3 officially underway, investing in hard assets like gold and silver (and the companies that mine for the metals) is the best solution to safeguard against the erosive impact of inflation on your purchasing power. On Sept. 13, Federal Reserve Chairman Ben Bernanke pledged to unleash a thirdwave of quantitative easing (QE3) to combat the economic slowdown.

SPY ( quote ) and EFA ( quote ) are driving the next leg. The most recent move out of emerging markets back into the developed economies of the world is only two days old, but it already feels like it will become a running theme. Expect one last bout of inflation hysteria from Asia despite better numbers coming in from Korea, Indonesia and even China.

A stronger economy, lower unemployment, and higher inflation might be good for the economy; but it won't be for a stock market addicted to cheap money stimulus, as the Fed is forced to raise rates as soon as April, but more likely in June. Time to Play Contrarian (MU) Chipotle Mexican Grill, Inc.: Will CMG Launch a "Better Burger"? All eyes are on Friday's non-farm payroll report for clues as to the likely pace and timing of rate hikes later this year, as well as the start of the first-quarter earnings season on April 11.

The only thing mounting is my skepticism of this "recovery" and, as far as that goes, offensive plays like the PowerShares S&P High Beta Portfolio (NYSEArca:SPHB) may be a way to get left in the red, let alone left behind. I could see making the case for high-beta funds like SPHB back in October when volatility was peaking. Well two-thirds of the growth came from rising gasoline prices and auto sales, with the remainder of the increase coming from food and clothing.