Markets Retreat Ahead of Next Week’s FOMC

Overall

  • The S&P 500 dropped 0.59% after weak economic indicators appeared ahead of the FOMC meeting next week
    • Markets reacted positively in early morning hours on momentum from yesterday’s indicators
      • Then they fell as today’s economic indicators showed weakness

Positives

  • No positives today, all eyes on next week’s FOMC statement on Wednesday

Negatives

  • Headline PPI rebounded 0.5% M/M from higher energy and food inflation, core inflation is up 0.1%
    • Headline inflation is up 1.8% Y/Y, while core inflation is up 1.6% Y/Y
    • Federal Reserve officials are likely to use this information for next week’s FOMC statement
  • Industrial Production remained flat, while capacity utilization fell from 77.8% to 77.6%
    • Manufacturing only rose 0.1%, while consensus was 0.3%
    • Overall, manufacturing remains weak, but most of the decrease came from utilities output which dropped 3.2%
  • Consumer Sentiment continues to fall, down to 82.7 from 84.5
    • Fall is due to rising gasoline prices, and could be an indicator of consumer spending

Article Of The Day: Fed Likely to Push Back on Market Expectations of Rate Increase

 

Like this post? Get more updates for FREE!

About Jon Brooks

Jon graduated Summa Cum Laude from Virginia Tech with a B.S. in Finance and a minor in International Business. During his undergraduate career, Jon interned with Goldman Sachs and PricewaterhouseCoopers. He was also a Senior Analyst in Bond And Securities Investing by Students (BASIS), the Vice President of the Society of Individual Investors, and a member of Beta Gamma Sigma. Jon is an analyst at a large accounting firm. Jon passed the CFA level 1 exam in January and is a CFA level 2 candidate.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

CommentLuv badge

Close