"There Is No Good News Across This Report" - A Shocked Wall Street Reacts To Today''s Scorching CPI Print
"There Is No Good News Across This Report" - A Shocked Wall Street Reacts To Today''s Scorching CPI Print As we noted in our preview last night , so confident was Wall Street that today''s CPI print would be a miss - driven ostensibly by a plunge in energy prices - that the Y|Y whisper dropped as low as mid|sub 7%, with Goldman saying the " Headline number most likely shows some disinflation and wont impact mkt meaningfully after tape’s recent run higher, unless shockingly cool…call it sub 7%...then keep your rally caps on " and JPM piling on that " a 7-handle CPI YoY we would likely to see a strong rally tomorrow. " In retrospect, pretty much everyone was wrong, with headline CPI coming in at a "shocking", red hot 8.3%... ... a number which 47 of 50 economists missed, and which just BMO (and two other smallish banks, SMBC Nikko and Berliner Sparkasse) predicted correctly: BMO 8.3% HSBC 8.2% BofA 8.2% ING 8.2% JPMorgan 8.1% Soc Gen 8.1% Citi 8% Goldman 8% TD 8% BNP 8% Jefferies 8% Standard Chartered 8% Stifel 8% Nomura 8% Wells Fargo 7.9% Credit Suisse 7.9% Morgan Stanley 7.9% Where did the surprises come from?
"There Is No Good News Across This Report" - A Shocked Wall Street Reacts To Today''s Scorching CPI Print
"There Is No Good News Across This Report" - A Shocked Wall Street Reacts To Today''s Scorching CPI Print As we noted in our preview last night , so confident was Wall Street that today''s CPI print would be a miss - driven ostensibly by a plunge in energy prices - that the Y|Y whisper dropped as low as mid|sub 7%, with Goldman saying the " Headline number most likely shows some disinflation and wont impact mkt meaningfully after tape’s recent run higher, unless shockingly cool…call it sub 7%...then keep your rally caps on " and JPM piling on that " a 7-handle CPI YoY we would likely to see a strong rally tomorrow. " In retrospect, pretty much everyone was wrong, with headline CPI coming in at a "shocking", red hot 8.3%... ... a number which 47 of 50 economists missed, and which just BMO (and two other smallish banks, SMBC Nikko and Berliner Sparkasse) predicted correctly: BMO 8.3% HSBC 8.2% BofA 8.2% ING 8.2% JPMorgan 8.1% Soc Gen 8.1% Citi 8% Goldman 8% TD 8% BNP 8% Jefferies 8% Standard Chartered 8% Stifel 8% Nomura 8% Wells Fargo 7.9% Credit Suisse 7.9% Morgan Stanley 7.9% Where did the surprises come from?