Stocks are taking a bit of a breather after printing new all-time highs earlier this week.  Earnings have been impressive, but supply chain issues are taking their toll as evidenced by highly anticipated earnings of both Apple and Amazon yesterday afternoon.  When one also factors in the massive labor shortage we’re facing, it’s easy to see why investors may be wary about piling in at these levels.  Both companies (and many others) have expressed concern over how these issues will affect their ability to operate in Q4 and beyond.  

Consumer sentiment came in at 0.6%, which is down from last month’s 1.0% reading.  We also saw a drop in personal incomes, which is largely attributed to ending of the enhanced unemployment aid.  It’s likely safe to assume that higher costs, decreased income, and lack of supply were behind the decline.  Speaking of higher costs, PCE came in at 4.4% Y/Y.  While that is a staggering number, the headline PCE inflation has decelerated for several months in a row.