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 Anonymous

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Your email address will not be published.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