Economic Data and Fed To Look For

An image of a stock chart
Credit: Shutterstock photo

Ahead of the opening bell this morning, the Producer Price Index (PPI) - a key inflation metric - for November looks to be running hot at +0.4%, both as the headline number and after stripping out (more volatile) food and energy costs. No revisions were made to the October headline, and year over year PPI ex-food & energy is +1.6%.

Count this as another arrow in the quiver of the Federal Open Market Committee (FOMC), which announces interest rate policy later today, to raise interest rates 25 basis points. No surprise here; unless Fed Chair Janet Yellen announces a more than quarter-point hike at her press conference this afternoon, the market should be conducting business as usual - after parsing Yellen's language regarding FOMC policy into 2017.

Retail Sales, on the other hand - another economic report issued ahead of today's market open - was light compared to expectations, only reaching +0.1%. This number rises to +0.2% ex-auto sales, but still light on this other key inflation metric.

With the shakeup at Goldman Sachs GS , where COO Gary Cohn is leaving to become President-elect Trump's chief economic advisor, David Solomon and Harvey Schwartz will step up to co-COO positions at the firm, which looks to have CEO Lloyd Blankfein in charge for the foreseeable future. Speaking of Trump organization, the President-elect's Strategic & Policy Forum now has three new members: Uber CEO Travis Kalanick, Tesla TSLA and SpaceX CEO Elon Musk and Pepsico PEP CEO Indra Nooyi.

Further, today is the day major tech leaders - Musk, Google GOOGL co-founder Larry Page, Microsoft MSFT CEO Satya Nadella and Apple AAPL CEO Tim Cook among them - meet at Trump Tower with the President-elect to discuss policy shifts. This looks to be pretty juicy: with Trump's known animosity toward trade practices with China - both the U.S.'s biggest trade partner and biggest tech market - a fly on the wall at this meeting would be highly valuable. We await the reactions of those involved.

Market indices are down modestly in the pre-market (tech-heavy Nasdaq is unched). Will the Dow rebound for its eighth straight trading day of gains on the path to 20,000, or will the large-cap index take a breather? Let's find out…

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics


Latest Markets Videos