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Wage Pressure Begins to Build – WSJ.com

We wrote in our quarterly letter that we expected inflation to rise more than expected.  The CPI and PPI next week should give the new Fed Chairperson, the chance to exhibit her inflation fighting credentials.  Expect some tougher talk of the bond vigilantes and a sharp downward reaction to interest rate sensitive utility stocks.  Our next largest position after our long Apple stakes is a short position on the XLU.   

May 4, 2014 7:42 p.m. ETT

The improving U.S. jobs market is impaired by stubborn, slow growth in wages, but recent results from companies show the outlook for some workers may be brightening. WSJs Theo Francis has the details on MoneyBeat. Photo: GettyThe improving U.S. jobs market has been marred by stubbornly slow growth in wages, but recent results from companies show the outlook for some workers may be brightening.A wide range of companies have reported upward pressure on wages in the early months of the year, including asset-manager State Street Corp. STT -1.88% , coatings manufacturer PPG Industries Inc. PPG +0.36% and eatery operators Chipotle Mexican Grill Inc. CMG +2.17% and Darden Restaurants Inc.

via Wage Pressure Begins to Build – WSJ.com.

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