Bloomberg Intelligence's 'Equity Market Minute' 5/20/2021

Gina Martin Adams discusses the impact of inflation on the S&P 500, focusing on the relationship between producer prices and operating margins. She highlights the current trend of core producer prices surpassing 2% growth, which pressures margins. The video also examines the correlation between consumer and producer prices, indicating potential margin challenges as PPI outpaces CPI.

What is the relationship between producer prices and S&P 500 operating margins?

• They move in opposite directions.

• They tend to move together.

• They are unrelated.

• They only correlate during economic downturns.

What happens when core producer prices surpass 2% growth year over year?

• Operating margins remain stable.

• Operating margins improve significantly.

• Operating margins face short-term struggles.

• Operating margins are unaffected.

Currently, what is the year-over-year growth rate of core producer prices?

• 2.2%

• 1.8%

• 2.0%

• 2.5%

How does the current pace of PPI compare to CPI?

• PPI and CPI are unrelated.

• PPI is slower than CPI.

• PPI is equal to CPI.

• PPI is faster than CPI.

What is the significance of the difference between CPI and PPI?

• It only affects consumer spending.

• It is a critical indicator of operating margin trends.

• It is irrelevant to inflation analysis.

• It has no impact on operating margins.