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 factors are likely to restrain S&P 500 margins according to Gina Martin Adams?

How did the core producer price index impact companies during the last cycle?

What is the current trend in core producer prices and how does it compare to the last 10 years?

Which sectors are experiencing downward revisions in operating margin forecasts?

What is the overall impact of rising operating margin forecasts in real estate and commodity-sensitive sectors?