The Pulse on the Economy and Capital Markets: Oct 4 – Oct 8, 2021

At a glance:

Markets rise in “basic industries” as bonds declined from higher rates. Service companies remain strong and the data shows people returning to the office at higher levels. Market expectations are high for Q3 earnings as public company earnings continue to reveal the true impact that supply chain challenges, inventor levels and inflation have had on profits.

• Overall, keep your eyes on the US 10 Year Treasury bond yield as it moves higher. Bonds are likely to continue to sell off while stocks from basic industries perform well.
• High-frequency data shows workers are back to work in the office in increasing numbers. Service companies remain strong with improving outlook. Both trends reverse the summer regressions caused by the Delta strain.
• Investors have been skittish as companies face challenges from supply chain constraints and inflation. As earning season starts we will learn how profits and margins will be impacted.
• Meanwhile, we are reading about a war brewing among New York and Texas to attract bitcoin miners, office and mall vacancy rates decrease, a breakthrough on the landmark global corporate tax rate and how digital mapping is a real estate game-changer.

Related resources:

• New York, Georgia and Texas are winning the war in attracting bitcoin miners
• Office and mall vacancy rates decreased slightly in Q3; effective rents started increasing
• Global leaders reach landmark deal on a global corporate tax rate
• How digital mapping is becoming a real estate game changer

Disclosures

Investment advisory services are offered by Aprio Wealth Management, LLC, a Securities and Exchange Commission Registered Investment Advisor.  Opinions expressed are as of the current date (October 12th, 2021) and subject to change without notice. Aprio Wealth Management, LLC shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, the information, data, analyses or opinions contained herein or their use, which do not constitute investment advice, are provided as of the date written, are provided solely for informational purposes and therefore are not an offer to buy or sell a security. This commentary is for informational purposes only and has not been tailored to suit any individual. References to specific securities or investment options should not be considered an offer to purchase or sell that specific investment.

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