The substantial economic calendar features inflation reports and housing, but also includes Michigan sentiment, the Fed’s Beige Book, and NFIB sentiment survey. We will also get the first earnings reports for the Q4 season. Of late, the calendar has not provided much of a clue to the upcoming market action. More than ever, we just know what to watch for. I am probably a little early on this week’s theme, but there are some signs of increasing interest among good sources. Some thought leaders are wondering:

Is it time to worry about inflation?

With both the PPI and CPI reports this week, now is as good a time as any to consider this question.

Last Week Recap

In my last installment of WTWA, I anticipated a week-long focus on the U.S./Iran confrontation. That was the case, underscored by a retaliatory missile attack. And then? A pause for reassessment. Do we dare hope that this is the end of the military action? We are far from any solution to the underlying problems.

I also suggested that the economy would get less attention until Friday’s employment report announcement. By Friday, it did seem that market activity had returned to the “normal” of recent days – punctuated by tweets, accusations, and the impeachment and election stories.

David Templeton (HORAN) helped to keep things in perspective with a look at past shocks and the market impact.

The Story in One Chart

I always start my personal review of the week by looking at a great chart. This week I am featuring the two different versions from Investing.com. This shows the effects of news in the hours when the stock market is closed.