Bloomberg Intelligence's 'Equity Market Minute' 9/10/2021

Gina Martin Adams discusses the impact of high input costs on S&P 500 margins, highlighting the challenges posed by slowing revenue growth. She examines the relationship between producer prices and operating margins, noting the difficulty companies face in passing price increases to consumers. Current core producer prices are at a decade-high, affecting forecasts, especially in consumer industries. However, real estate and commodity-sensitive sectors show positive margin forecasts. The video concludes with a summary of these insights.

What is the likely impact of high input costs on S&P 500 margins?

• They will increase margins.

• They will double the margins.

• They will have no effect on margins.

• They will restrain margins.

How do producer prices and S&P 500 operating margins typically behave?

• They usually move together.

• They always remain constant.

• They are unrelated.

• They move in opposite directions.

What was the percentage increase in core producer prices in August?

• 5.0%

• 4.6%

• 3.5%

• 2.0%

Which sector is experiencing the hardest hit in terms of operating margin forecasts?

• Consumer industries

• Technology

• Healthcare

• Utilities

Which sectors are still seeing a rise in operating margin forecasts?

• Consumer staples

• Financials

• Real estate and commodity-sensitive sectors

• Telecommunications