Editor's Note: Below is an excerpt from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to get it.

Got late cycle inflation? Uh, yeah. 

You have it developing, right on time (as it always does at this stage of the US cycle) in wages too. Today’s Chart of The Day is what macro economists call the ECI (Employment Cost Index: Wages & Salaries). #Hoowah!

And what happens to companies that have #accelerating inflation in their cost structures (wages and input costs) with A) slowing demand and/or B) bloated inventories with C) a lack of pricing power? 

A: Industrials (XLI) down -3.2% last week to -3.3% YTD = Bearish TREND @Hedgeye 

CHART OF THE DAY: Got Late Cycle Inflation? --> Wages & Salaries - 04.30.18 EL Chart

CHART OF THE DAY: Got Late Cycle Inflation? --> Wages & Salaries - early look