Markets Retreat Ahead of Next Week’s FOMC


  • 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


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


  • 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


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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.

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