Connect with us

Published

on

The Dow Jones Industrial Average plunged more than 500 points on Tuesday after hot inflation data for January dimmed hopes that the Federal Reserve would begin cutting interest rates next month.

The Dow, which tumbled as 750 points, slid 1.4% — its worst day since since March 2023. The S&P 500 slipped 1.4%, while the tech-heavy Nasdaq Composite fell 1.8%.

Both the Dow and the S&P 500 had hit record highs this year before plunging following the release of the Consumer Price Index, which rose a stiffer-than-expected 3.1% on an annual basis.

The figure — which tracks changes in the costs of everyday goods and services — remains far off from the Fed’s 2% target.

Core CPI a number that excludes volatile food and energy prices increased 0.4% in January, to 3.9%.

The figure, a closely-watched gauge among policymakers for long-term trends, was also higher than what economists anticipated.

“Inflation staying sticky is everyone’s biggest fear and this report is showing its not going down,” Chris Zaccarelli, the chief investment officer of Independent Advisor Alliance, said. “The knee- jerk reaction is for stocks and bonds to sell off. That makes sense. Then we’ll wait for the next report and if that’s lower this will turn out to be just a blip.”

The increase could delay the prospect of three interest rate cuts the Fed anticipates to make in 2024.

Wall Street had initially expected that the first time rates were brought down from their current 22-year high would be in March.

Fed Chair Jerome Powell said after the latest policy meeting that “it’s not likely that this committee will reach that level of confidence in time for the March meeting.”

The CME FedWatch Tool shows that a May rate is also largely off the table.

The probability of a May rate cut slumped from 52.2% to 36.6% on Monday while the chance of a slash in June now stands at 78.6%, down from 92.2%.

Atlanta Fed President Raphael Bostic, who is voting on the Federal Open Market Committees policy decisions this year, told CNN that he’s anticipating the first of three cuts to take place in the fourth quarter — weeks after the mid-year slowdown Wall Street is now expecting.

By the end of the year, inflation will be near “the lower twos,” he said.

This isnt a TikTok video or something like that where you get trends happening so fast. It takes a while for the decisions of individual decisions and millions of people to come together and to start to create trends, he told CNN.

At the same time, theres a significant risk if the Fed leaves interest rates where they currently are for too long, Bostic warned.

Subscribe to our daily Business Report newsletter!

Please provide a valid email address.

By clicking above you agree to the Terms of Use and Privacy Policy.

Never miss a story.

He also noted how difficult it’s been to tamp down inflation as the job market has remained surprisingly strong.

Januarys monthly jobs report added a blockbuster 353,000 new jobs to the economy — nearly double analysts’ expectations. 

Although inflation appears to be slowing, the economy remains Americans overall top concern, cited by 22% of poll respondents, as they have struggled with inflation and other aftershocks of the COVID-19 pandemic, according to a Reuters/Ipsos poll released last month.

Since taking office, Biden has made a pitch for lower supermarket prices, pushed drug makers to lower insulin costs, hotel chains to reduce fees and tried to diversify the meat-packing industry after beef prices skyrocketed in the aftermath of the pandemic.

Alfredo Ortiz, president and CEO of Job Creators Network, told The Post in a statement that “inflation remains historically high and is nothing to cheer about.”

“Talk to any American going to the grocery store, hardware store or pharmacy, and they’ll tell you prices continue to rise at a painful rate.”

A December 2023 report on shrinkflation — when businesses cut product sizes but keep prices the same — found that household paper products were 34.9% more expensive per unit than they were in January 2019, with about 10.3% of the increase due to producers shrinking the sizes of rolls and packages.

Researchers also found that the price of snacks like Oreos and Doritos had gone up 26.4% over the same period, with shrinking portions accounting for 9.8% percent of the increase.

Continue Reading

Sports

Fantasy baseball: What to expect from Red Sox prospect Marcelo Mayer

Published

on

By

Fantasy baseball: What to expect from Red Sox prospect Marcelo Mayer

Boston Red Sox SS prospect Marcelo Mayer is getting the call to the major leagues, as starting 3B Alex Bregman (calf) is headed to the injured list. Fantasy managers should not expect Mayer, 22, to replace Bregman’s excellent numbers (.938 OPS), but he should see opportunity for playing time over the likes of Nick Sogard and Abraham Toro. Mayer is an excellent defensive shortstop, but he has played second base and third base at Triple-A Worcester as well this season.

Ranked No. 6 in Kiley McDaniels’ recently updated top 50 prospect rankings, Mayer hit .265/.342/.465 over 43 games and 193 plate appearances at Triple-A, with 9 home runs, 43 RBI and 2 stolen bases. The No. 4 pick in the 2021 amateur draft, Mayer hits left-handed, makes solid contact and drew a 10.4% walk rate this season. There is power upside, but as with most prospects, fantasy managers should keep initial expectations well in check.

Everyone loves the prospects until they reach the majors and alter their narrative (as most do). Chicago Cubs rookie IF Matt Shaw struggled earlier this season and was sent back to Triple-A, though he has returned to the majors. Arizona Diamondbacks SS Jordan Lawlar remains hitless in the majors this season. New Red Sox teammate Kristian Campbell is hitting .225 with a 27% strikeout rate. Hitting big league pitching can be problematic even for long-time veterans. In ESPN’s shallow standard leagues, with no middle infield spot and only nine active hitting spots, it is tough to make an argument to rush out and add Mayer. At the time of the promotion announcement, he was available in 94% of ESPN standard leagues.

Those needing to replace Bregman at third base should look at the Texas RangersJosh Jung and Jake Burger, and the Philadelphia PhilliesAlec Bohm, proven players with job security. For those looking at adding Mayer as their shortstop, Angels star Zach Neto somehow remains available in 71% of leagues, and he certainly comes recommended over Mayer, as does Colorado Rockies starter Ezequiel Tovar. Mayer will likely hit near the bottom of the Boston lineup. If he hits well, he might move up, and he might keep his roster spot even when Bregman returns to health.

It is exciting when one of the top prospects in the sport earns a promotion, but hitting a baseball against top pitching can be challenging for all. Those in deeper formats can make a better case to add Mayer and hope for the best.

Continue Reading

Sports

Sources: Red Sox call up heralded prospect Mayer

Published

on

By

Sources: Red Sox call up heralded prospect Mayer

The Boston Red Sox are calling up infielder Marcelo Mayer, the No. 6 prospect in baseball and a central part of their future who they hope can play a role in their push for a postseason berth this year, sources told ESPN.

Mayer, 22, who has excelled at shortstop as he ascended through the Red Sox’s farm system after they took him with the fourth overall pick in the 2021 draft, is likely to get playing time with All-Star third baseman Alex Bregman expected to land on the injured list after leaving Friday’s game with right quadriceps tightness.

At Triple-A Worcester, where Mayer was hitting .271/.347/.471 with nine home runs and 43 RBIs in 43 games, he played four games at third base. Mayer also could see time at shortstop, with Trevor Story in a profound monthlong slump.

The arrival of Mayer marks the second of Boston’s big three prospects, with Kristian Campbell earning the second-base job in spring training. After a hot start, Campbell has slumped likewise and is hitting .225/.321/.369. The third of the group, outfielder Roman Anthony, is the No. 1 prospect in MLB, according to ESPN’s Kiley McDaniel, and is hitting .323/.455/.513 with six home runs and 18 RBIs at Triple-A.

The loss of Bregman, who is hitting .299/.385/.553 in his first year with the Red Sox, takes an MVP-caliber bat out of a lineup that has struggled. The Red Sox lost first baseman Triston Casas for the season to a ruptured tendon in his left knee and have struggled to find a productive fill-in, amplifying calls for the team to reach into its significant minor league depth.

Boston has taken Mayer’s development slowly, with injuries limiting him to 91 games in 2022, 78 games in 2023 and 77 games last year. He is a career .273/.360/.466 hitter in 315 minor league games and projects to be a middle-of-the-order bat and Boston’s long-term solution at shortstop.

Bregman’s contract includes an opt-out after the 2025 season, opening the possibility of a shift to third for Mayer. At 6-foor-3 and 190 pounds, he has both the size and the arm strength typically sought for the position. But his glove at shortstop is regarded as above average, and Boston could opt to move Story off the position for Mayer or Ceddanne Rafaela, who also plays center field for the Red Sox.

Continue Reading

Sports

Cora: Bregman moving closer to possible IL stint

Published

on

By

Cora: Bregman moving closer to possible IL stint

BOSTON — Red Sox third baseman Alex Bregman could be nearing a trip to the injured list after leaving Friday’s game with right quadriceps tightness, manager Alex Cora said.

“He’s getting an MRI. He’s sore,” Cora said at Fenway Park on Saturday morning before the Red Sox were set to face the Baltimore Orioles in the first game of a split doubleheader.

“We’ll see where he’s at,” Cora said before later adding that Bregman said it felt “worse” than he expected.

Asked whether a stint on the IL could be coming, Cora said: “I don’t want to jump into conclusions, but yes.”

If Bregman does need to go to the IL, who will play third?

Cora said the plan is for the team to “mix and match” and answered “no” when asked whether Rafael Devers could be in the immediate plans.

“There’s a lot of guys in the conversation,” Cora said. “Roster construction comes into play, guys in the minor leagues, how they fit the roster — all that stuff.”

Could Devers be in the mix at some point?

“We made a decision in the offseason, and this is where we’re going,” Cora said, without completely closing the door. “There are a few things that we took into consideration, and I think we’ve been very consistent with it.

“I’m not going react to the outside world because [they] think that’s the right move. Maybe it’s not, right? Maybe we’re doing it right? Maybe we’re doing it wrong?”

Earlier this month, Devers told the Red Sox he wasn’t moving to play first base. The designated hitter has been red-hot lately after collecting a career-best eight RBIs in a lopsided victory over the Orioles on Friday afternoon.

“I know the guy. He’s raking. He’s the best DH in the American League right now,” Cora said. “If he keeps continuing to do this, he’s going to be in the All-Star Game as the DH and going to win a Silver Slugger as a DH. This is where we’re going. We’ll continue to talk. I’m not going to say we’re going to close the door.”

Boston already lost a corner infielder for the season when first baseman Triston Casas ruptured a tendon in his left knee and had season-ending surgery. The loss of Bregman could be a big blow to a lineup that has struggled at times.

“We’ll be OK. Obviously, he’s a big part of our offense,” Cora said. “Triston is a big part of our offense. We’ve just got to find a way to score runs in a different way, and we’re prepared for that.”

Devers, the team’s third baseman for eight seasons, was moved to DH after Bregman signed a three-year, $120 million deal as a free agent and was given the job. After a slow start at the plate, Devers has heated up and is batting .299 with 12 homers and 47 RBIs.

Continue Reading

Trending