The CPI rose at a “firm” pace that met expectations, solidifying expectations for the Federal Reserve to cut interest rates next week. It is also additional evidence that the battle against inflation has stalled. The core CPI rose by 0.3% for the fourth straight month. From a year ago it rose 3.3%. The headline number … Read more
Markets were quiet unwilling to make any significant moves ahead of key inflation data released today and tomorrow. Bank America writes “the market is pricing in the smallest implied reaction to the CPI since 2021.” Consensus is expecting a 0.3% increase in both the headline and core CPI. Year over year, the CPI is forecasted … Read more
All markets were quietly lower yesterday for a myriad of reasons. Market leader NVDA slid as China opened a probe over suspicions the chipmaker broke anti-monopoly laws. Concerns that Middle East tensions could further escalated given the unexpected toppling of the Syrian government. To more mundane topics such as tomorrow’s release of November’s CPI that … Read more
Treasuries rallied on Friday as the November employment data was mixed. At the time of this writing, futures are suggesting an 80% probability the Federal Reserve will ease at its December 18 meeting. The market has almost priced in three rate cuts during 2025, virtually unchanged from the day before the data was released The … Read more
November’s employment report is released at 8:30. Non-farm and private sector payrolls are expected to rise by 218k and 203k, respectively. A 4.1% unemployment rate and a 0.3% increase in average hourly earnings are forecasted. The labor participation rate (LPR) is believed to have increased to 62.7% from 62.6%. Any increase in wages may be … Read more
FRB Chair Powell stated yesterday the economy is in “remarkably good shape.” Led by technologies, equites maintained their early day gains. Tomorrow is the release of the all-inclusive BLS Employment report. Data yesterday indicated that employment remained firm in November while services activity expanded at the slowest pace in 3 months. At the time of … Read more
Markets were relatively quiet yesterday ahead of several key economic statistics and speeches from Fed officials. The data coupled with Fed comments can outline monetary policy assumptions ahead of the December 18 Fed meeting. Yesterday the top tier JOLTs job survey was stronger than expected. Available positions increased to 7.74 million from a revised 7.37 … Read more
Consumer increased in November to the highest level in more than year on optimism about the economy and labor market in the wake of Donald Trump’s victory. The measure of expectations for the next six months edged to almost a three-year high. Moreover, 51.4% of U.S. households think stock prices are headed higher, according to … Read more
The narrative is rising about the potential implications of massive federal spending and the gargantuan deficit. DOGE is becoming a household world and politicians, think tanks and the electorate love to condemn government waste, fraud and abuse. The issue at hand is the details,,.the specifics as to what agency or program is to be cut. … Read more
Welcome to Thanksgiving Week. Trading is expected to wane during the week as the markets are closed Thursday and are only open to 1:00 PM on Friday. Liquidity may be “challenged” given the potential dearth of traders. The economic calendar has several top tier indicators, the response to which may be exacerbated, perhaps specifically in … Read more
