DC Lite #41

Welcome back to DC Lite: Daily Chartbook’s free, entry-level newsletter containing 5 of the day’s best charts & insights. Upgrade to get all 30 charts.

1. Average hourly earnings. Wages rose by 0.4% MoM in December (vs. 0.3% est) to 4.1% YoY (vs. 3.9% est). The pickup in YoY wages is the first in 6 months.

2. Excess savings. JPMorgan estimates consumers still have roughly $1 trillion in excess savings remaining.

3. ISM Services PMI. The index fell to 50.6 (vs. 52.6 est), the lowest reading since May. The Employment index plunged to the lowest since July 2020 and entered into contraction for the first time in 7 months.

4. Cash inflows. Money market funds saw the largest-ever inflow for the first week of the year (+$123bn) and the most since March 2023.

5. Q4 EPS revisions (I). Analysts have lowered EPS estimates for Q4 by a larger margin (6.8%) than average (3.5%).

Thanks for reading!