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The Morning View: May 12, 2021

 Announced this morning, the Consumer Price Index increased 0.8% in April, much higher than expected, and is 4.2% higher on annual basis.  Prices of Used Cars and Trucks were 10% higher in the month, while Energy prices fell.  The core rate, which excludes prices for food and energy, increased 0.9% in April, also much higher than estimates, and is up 3.0% on an annual basis.  Overall, today’s report verifies that inflationary pressures are starting to show up in economic data points, partially due to base effects, fiscal stimulus, and the economic re-opening.  As we discussed yesterday during our Equity Strategy workgroup meeting, individual companies will be impacted by higher inflation, regardless of whether these pressures prove transitory or longer lasting.  Reviewing the ability for each organization to absorb these costs or if they pass along higher prices to their customers will be key for margins going forward.  The Federal Reserve will likely keep their accommodative stance in place until they are certain these pressures persist.  In all, bond yields ticked higher following the release of the data and equity markets are lower as we head into the market open.  

This material is intended to be for informational purposes only and is intended for current or prospective clients of Argent Trust Company. This information is obtained from sources believed to be reliable, and its accuracy and completeness are not guaranteed. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice, and does not take into account all the circumstances of each investor. Forward-looking assumptions are Argent Trust Company’s current estimates or expectations of future events or future results based on proprietary research and should not be construed as an estimate or promise of results that a portfolio may achieve. Actual results could differ materially from the results indicated by this information. Investments can go down as well as up. Past performance is not a reliable indicator of future results.