Inflation remains high and has been causing some concern among economists
Personal Consumption Expenditures (PCE) index will be closely watched by investors and policymakers in the coming days as it is preferred by the Fed as an inflation gauge.
The Federal Reserve keeps interest rates low
The US economy is currently experiencing a period of growth
The US economy is currently experiencing a period of growth, with the Federal Reserve keeping interest rates low. However, inflation remains high and has been causing some concern among economists. The Personal Consumption Expenditures (PCE) index will be closely watched by investors and policymakers in the coming days as it is preferred by the Fed as an inflation gauge.
The S&P 500, Dow Jones and Nasdaq Composite ended the week up about 1% while the Nasdaq added about 0.6%. Both the S&P and Dow closed Friday at record highs.
Nvidia's blowout earnings report sent stocks to record highs last week.
The Personal Consumption Expenditures (PCE) index, which is preferred by the Federal Reserve as an inflation gauge, will test stock market performance in the coming days. A look at consumer confidence and updates on manufacturing sector are also in focus during this week.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(50%)
The article is misleading in several ways. Firstly, it states that the S&P 500 and Dow Jones ended the week up about 1% while the Nasdaq Composite added about 0.6%. However, this statement is incorrect as these percentages are based on a different time frame than what was stated earlier in the article. The correct information should be that last week's closing prices were higher by approximately 1%, with both indices ending Friday at record highs.
Last week's closing prices were higher by approximately 1%, with both indices ending Friday at record highs.
The S&P 500 and Dow Jones ended the week up about 1% while the Nasdaq Composite added about 0.6%. However, this statement is incorrect as these percentages are based on a different time frame than what was stated earlier in the article.
Fallacies
(85%)
The article discusses the upcoming release of inflation data and its potential impact on stock prices. The author mentions that a hotter-than-expected Consumer Price Index (CPI) report in the past rattled markets and sparked a stock sell-off. However, this time around, economists expect annual 'core' PCE to have clocked in at 2.4% in January, which is an increase from the month prior but still below the Fed's 2% target. The author also mentions that an uptick in monthly price increases would set the stage for a 'bumpy' inflation picture over the next several months.
The latest reading on inflation is slated for release on Thursday.
Bias
(85%)
The article discusses the upcoming release of inflation data and its potential impact on stock prices. The author mentions that a hotter-than-expected Consumer Price Index (CPI) report in the past rattled markets and sparked a selloff. This suggests bias towards negative sentiment regarding inflation, which could lead to market volatility.
A blowout earnings report from AI darling Nvidia sent stocks to record highs last week.
Site
Conflicts
Of
Interest (50%)
Josh Schafer has conflicts of interest on the topics of Federal Reserve, Personal Consumption Expenditures (PCE) index, Inflation and Nvidia (NVDA). He is a financial analyst who covers technology stocks including Nvidia. This could compromise his ability to report objectively on these topics.
Josh Schafer has covered the Federal Reserve in previous articles and may have personal or professional ties with members of the Fed.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topic of inflation as they mention Nvidia (NVDA) and S&P 500 (GSPC), which are companies that may be affected by changes in inflation. The article also mentions earnings reports, which could affect stock prices.
<p>Inflation is a key factor in determining the value of stocks. If inflation rises too quickly or becomes too high, it can erode stock prices.</p>
The author writes 'Nvidia's revenue growth has been driven largely by demand for its data center products, as more businesses shift to remote work and online learning.'
Consumer confidence has been recovering from some inflation-induced blahs
Home prices have been in the doldrums because of high mortgage rates - borrowing costs have eased a bit lately
Monthly increases in home prices have steadily slowed since the middle of last year as rising mortgage rates discouraged housing sales and Nomura expects more of the same in S&P's release of December figures on Tuesday
Inflation seemed to be on a steady downward path until January when Labor Department's consumer price index (CPI) raised concerns earlier this month
Accuracy
The Federal Reserve follows a lesser-known price measure more closely
Companies are expected to show flat or slightly higher purchases in January when the Commerce Department releases data on Tuesday
Deception
(50%)
The article is deceptive in several ways. Firstly, it presents the idea that high inflation has been retreating when in fact it has only slowed down slightly and then flared up again. Secondly, the article suggests that companies are spending more money on equipment due to fading recession fears and expected interest rate cuts later this year, but there is no evidence of this in the data presented. Thirdly, the article presents a misleading comparison between monthly increases in home prices before and after seasonal adjustments when it would be more accurate to compare them without any adjustment. Fourthly, the article suggests that consumer confidence has been steadily improving since late 2021 but there is no evidence of this in the data presented. Lastly, the article presents a misleading comparison between US inflation and other countries' inflation when it would be more accurate to compare them on their own merits.
The article suggests that consumer confidence has been steadily improving since late 2021 but there is no evidence of this in the data presented. For example, the article states that In January, consumer confidence reached the highest level since late 2021 on easing inflation, strong job growth, rising stock prices and the prospect of lower interest rates but does not provide any specific numbers or data to support this claim.
The article presents a misleading comparison between US inflation and other countries' inflation when it would be more accurate to compare them on their own merits. For example, the article states that Inflation seemed to be on a steady downward path until the Labor Department’s consumer price index (CPI) raised concerns earlier this month but does not provide any specific numbers or data to support this claim.
The article states that high inflation has been retreating when in fact it has only slowed down slightly and then flared up again. For example, the average home price in major metro areas fell for the first time in 10 months (before seasonal adjustments) according to S&P CoreLogic Case-Shiller Home Price Index of 20 cities.
The article suggests that companies are spending more money on equipment due to fading recession fears and expected interest rate cuts later this year, but there is no evidence of this in the data presented. For example, the article states that new orders for such long-lasting goods rose in November and December but does not provide any specific numbers or data to support this claim.
The article presents a misleading comparison between monthly increases in home prices before and after seasonal adjustments when it would be more accurate to compare them without any adjustment. For example, the article states that monthly increases in home prices have steadily slowed since the middle of last year as rising mortgage rates discouraged housing sales but does not provide any specific numbers or data to support this claim.
Fallacies
(75%)
The article contains several examples of informal fallacies. The author uses an appeal to authority by citing the opinions of economists without providing any evidence or reasoning for their conclusions. Additionally, the author uses inflammatory rhetoric when describing high inflation as a 'burden' and a 'flare-up'. There are also several examples of dichotomous depictions in the article, such as when it describes consumer confidence as being either improving or declining without providing any evidence for these claims. Overall, while there are no formal fallacies present in this article, the author uses inflammatory language and appeals to authority which can be seen as informal fallacies.
The Federal Reserve follows a lesser-known price measure more closely
Businesses have been encouraged by fading recession fears and the Federal Reserve's expected interest rate cuts later this year, says Nomura economist Aichi Amemiya.
Nomura expects more of the same in S&P’s release of the December figures on Tuesday.
Bias
(85%)
The article contains several examples of bias. The author uses language that dehumanizes the Federal Reserve and implies they are responsible for high inflation rates. They also use a phrase from the analysis rules list: 'by the analysis rules'. Additionally, there is an example where the author quotes someone else without providing context or clarification on their position.
The article contains several examples of bias. The author uses language that dehumanizes the Federal Reserve and implies they are responsible for high inflation rates. They also use a phrase from the analysis rules list: 'by the analysis rules'. Additionally, there is an example where the author quotes someone else without providing context or clarification on their position.
Site
Conflicts
Of
Interest (50%)
The article discusses the potential for Federal Reserve interest rate cuts and their impact on business investment, home prices, consumer confidence, Americans and January data. The author is a Nomura economist Aichi Amemiya who has an expected interest rate cut later this year.
Nomura economist Aichi Amemiya
's consumer price index (CPI) raised concerns earlier this month.
The Fed's favorite inflation gauge is scheduled to be released next week.
Nvidia had a blowout earnings report on Wednesday night.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(50%)
The article contains several examples of deceptive practices. Firstly, the title is misleading as it implies that the Fed's favorite inflation gauge will be discussed in detail when only a brief mention is made about it. Secondly, there are two portfolio earnings reports mentioned but no details or analysis provided on them except for one sentence each which does not provide any insight into their performance. Thirdly, the article uses sensationalism by stating that Nvidia's blowout earnings report was a big reason why Wall Street returned to its winning ways without providing any evidence to support this claim.
There are two portfolio earnings reports mentioned but no details or analysis provided on them except for one sentence each which does not provide any insight into their performance.
The article uses sensationalism by stating that Nvidia's blowout earnings report was a big reason why Wall Street returned to its winning ways without providing any evidence to support this claim.
The title is misleading as it implies that the Fed's favorite inflation gauge will be discussed in detail when only a brief mention is made about it.
Fallacies
(85%)
The article contains several fallacies. Firstly, the author uses an appeal to authority by stating that Nvidia's blowout earnings report was a big reason why Wall Street returned to its winning ways this week. This is not true as there may have been other factors at play that contributed to the market performance. Secondly, the article contains inflammatory rhetoric when it states
Bias
(85%)
The article contains examples of monetary bias and religious bias. The author uses language that depicts the Fed as being in favor of inflation, which is not necessarily true. Additionally, the title mentions a specific portfolio earnings report without providing any context or information about other reports that may be important to investors.
The article's title mentions 'Feds favorite inflation gauge', implying that the Fed has a preference for this particular measure of inflation over others. This is not necessarily true and could be seen as biased language.
The author uses phrases such as 'Wall Street returned to its winning ways' which implies that the stock market is always positive, when in reality it can have both ups and downs.
Site
Conflicts
Of
Interest (50%)
Zev Fima has conflicts of interest on the topics of Fed's favorite inflation gauge and portfolio earnings reports. He is likely biased towards Nvidia as he mentions their blowout earnings report in his article.
Author
Conflicts
Of
Interest (50%)
Zev Fima has conflicts of interest on the topics of Fed's favorite inflation gauge and portfolio earnings reports. He may have financial ties to companies or industries that are affected by these topics.
The current US economic expansion is being discussed.
Dominique expects the Q42023 second reading and reviews the latest Fed minutes.
Nvidia's blowout earnings report sent stocks to record highs last week.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(0%)
The article contains an appeal to authority fallacy. The author cites the Fed minutes as a source of information without providing any context or analysis.
It's a leap year in 2024 for the first time since Feb 2020, when the pandemic was starting to fill front pages.
The PCE report is a key economic indicator that will be closely watched by investors and policymakers.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The article contains several examples of informal fallacies. The author uses an appeal to authority by citing the Federal Reserve's interest in a PCE report and stating that it will be closely watched. Additionally, the author uses inflammatory rhetoric when describing economic data as 'dismal'. There is also an example of a dichotomous depiction when comparing new home sales SAAR to durable goods orders M/M.
The Federal Reserve's interest in a PCE report and stating that it will be closely watched
Inflammatory rhetoric used to describe economic data as 'dismal'
Adam Button has conflicts of interest on the topics of US economic calendar, PCE report, new home sales and durable goods orders. He is a member of the Federal Reserve Bank of Atlanta (Raphael W. Bostic) which reports on these topics.
Author
Conflicts
Of
Interest (0%)
Adam Button has conflicts of interest on the topics of US economic calendar, PCE report, leap year 2024 and new home sales. He is a member of the Federal Reserve Board and serves as Vice Chairman for Supervision and Regulation.
