The Profit Margin: August 17, 2026
Statistic of the Week
Realtor.com released its annual survey of the “10 Hottest ZIP Codes,” and for the fourth consecutive year, the list is concentrated in the Northeast and Midwest, driven largely by limited housing supply. Peabody, Massachusetts, Montclair, New Jersey, and Sewell, New Jersey, took the top spots. Proximity to major cities was another contributing factor. The rankings consider both online property views and the pace at which homes sell.
Global Perspective
Fees charged for ships transiting the Panama Canal have reached a new record high. Prices have been rising since the start of the war with Iran, but the most recent increase has been attributed to lower water levels feeding the canal’s lock system. Lower water levels force ships to carry less cargo, reducing the canal’s overall capacity. This has resulted in longer wait times and, in turn, higher transit costs.
Market Moving Events
Tuesday: Housing Starts, Import Prices, Industrial Production
Wednesday: FOMC Meeting Notes
Thursday: Jobless Claims, Leading Indicators
Friday: U.S Flash Manufacturing, U.S Flash Services
Commentary
While the weekly returns for the major domestic equity indices appeared relatively flat, volatility remained elevated throughout the week. The major averages delivered mixed results. The DJIA declined 0.56%, the Nasdaq gained 0.14%, and the S&P 500 rose 0.56%.1 The S&P 500 reached a record high during the week,2 while both the S&P and Nasdaq have now posted positive returns for three consecutive weeks.3 Despite softer-than-expected inflation data, longer-term bond yields moved higher, with the 10-year Treasury yield rising 0.05% to close Friday at 4.70%.4
Inflation data and the health of the consumer remain key areas of focus for investors. Last week’s CPI (chart right) and PPI reports showed inflation moderating in July, although higher energy prices in August could push the next readings higher.5 Retail sales unexpectedly declined in July but
remained 5% above year-ago levels, outpacing inflation.6 Volatility in energy prices and the shift of Amazon’s Prime Day from July to June werecited as contributing factors.7 This week, investors will hear from several major retailers, particularly the big-box stores. Consumers appear to be economizing and shifting more spending toward these retailers, raising questions about the underlying health of household finances. However, there are also encouraging signs: an increasing share of consumers are paying their credit card balances in full, while inflation-adjusted savings remain elevated.8
In addition to earnings reports from several major big-box retailers, investors will receive a series of economic reports providing further insight into the health of the manufacturing sector.
Chart of the Week
The Consumer Price Index moderated in July, with the annual inflation rate falling from 3.5% in June to 3.4%. Core inflation, which excludes the more volatile food and energy components, also eased slightly to 2.4%.
Source Materials
Market Moving Events:
MarketWatch.com
Chart of the Week:
Clearnomics,
Bureau of Labor Statistics
Statistic of the Week:
Yahoo! Finance, Realtor.com
Global Perspective:
The Economist
Commentary:
1. Bloomberg
2. Investor’s Business Daily
3. Investor’s Business Daily
4. MarketWatch.com
5. Bureau of Labor Statistics
6. Census Bureau
7. MarketWatch.com
8. Barron’s