The DC Today - Thursday, October 13, 2022
The Dividend Cafe
The Dividend Cafe - The Bahnsen Group
4.9 • 572 Ratings
🗓️ 13 October 2022
⏱️ 16 minutes
🧾️ Download transcript
Summary
Okay, so one of the largest intra-day market moves on record (from down -550 to up +950 – a 1,500 bottom-to-top move today). So there is market action AND inflation/economic action to unpack, and you have come to the right place:
MARKET ACTION
Dow: Up +828 points (+2.83%) – was down -550 points at the low S&P: +2.60% Nasdaq: 2.23% 10-Year Treasury Yield: 3.95% (+5 basis points) Top-performing sector: Financials (+4.14%) – I am not going to take the time to look it up, but I will safely guess that this is the best day in years for Financials; in fact, I bet HALF of this would be the best day of 2022 for financials … NOTE: Energy was right behind it at +4.08% Bottom-performing sector: Consumer Discretionary (+0.98%) WTI Crude Oil: $89.25/barrel (+2.27%) Key Economic Point of the Day:
CPI (headline) increased +0.4% for the month where +0.3% had been expected. Headline inflation is up +8.2% on the year vs. a peak of +8.9% several months back. Core CPI (ex food and energy) was up +0.6% in September. Energy prices fell -2.1% but food prices increased +0.8%. It is all about food inflation in the aggregate data. Services is the source of increased inflation. Rents were up +0.8% on the month and primary residence impact is up +7.2% year-over-year. This is simply not true in the present tense but the lag effect is the driver here as we shall all see in a couple months’ time. The Fed has NO influence on this, but Health insurance prices were up a staggering 2.1% on the month and are up +28% on the year Airfare is up 43% on the year (base effect from limited travel a year ago) Goods prices were FLAT – slowest year-over-year increase since May 2021 (+6.6%) Used car prices down -1.1% on the month Clothing down -0.3%
Links mentioned in this episode: DividendCafe.com TheBahnsenGroup.com
Transcript
Click on a timestamp to play from that location
| 0:00.0 | Welcome to the Dividing Cafe weekly market commentary focused on dividends in your portfolio and dividends in your understanding of economic life. |
| 0:12.3 | Well, hello and welcome to a very exciting D.C. today and what was an absolutely bizarre market day. You had futures up about 350 points this morning. I'm guessing this was |
| 0:29.2 | about 345 in the morning. And after the CPI report came a couple hours later, in one minute, |
| 0:37.2 | they had dropped to negative 300. So he had a |
| 0:39.4 | 650 point swing in futures. And then the market itself, you know, open 630 a.m. Pacific time, |
| 0:49.8 | 9.30 a.m. Eastern. The market opened down 550 points, kind of batted around there for, |
| 0:58.6 | you know, a few minutes, but really proved to be the low of the day. And as I sit here, |
| 1:05.0 | the Dow closed up 828 points. It was at one point up 950. So you had a 1,500 point swing from the low point of the |
| 1:15.5 | day to the high point of a day. And you closed pretty near the high of the day. Dow up 2.83%. And the |
| 1:24.4 | S&P up 2.6 and the NASDAQ up 2.23. |
| 1:29.3 | Interesting in a number of levels, by the way, that on very high beta days like this, |
| 1:36.4 | meaning it's risk on and everything is rallying, the biggest rally generally is in the most |
| 1:43.0 | aggressive, growthy, junky, you know, high valuation type stuff. |
| 1:48.0 | And today it was kind of a quality rally. |
| 1:51.2 | The top performing sector was financials. |
| 1:53.5 | It was up 4.14%. |
| 1:55.7 | And I didn't look this up. |
| 1:57.6 | So I don't know if what I'm saying is true. |
| 1:59.4 | But I would very much speculate |
| 2:01.4 | that this is the best day in years for financials. I can't recall seeing the financial sector up |
| 2:10.3 | that much and one day in quite a while. But I would guess it's double the best day we've had on |
| 2:17.4 | financials for this calendar year. 2022, I don't think it's double the best day we've had on financials for this calendar year. |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from The Dividend Cafe - The Bahnsen Group, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of The Dividend Cafe - The Bahnsen Group and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2026.