Last Updated 4:00 PM EST
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Stock indices finished today’s trading session in the green ahead of tomorrow’s CPI reading. The Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 gained 1.58%, 1.43%, and 1.24%, respectively.
CPI is expected to come in at 7.3% year-over-year and 0.3% month-over-month. Meanwhile, core CPI is forecast to come in at 6.1% on a yearly basis and 0.3% compared to last month.
Interestingly, the Cleveland Federal Reserve updated its latest inflation nowcast reading, which allows it to estimate inflation in real time. Currently, it estimates that inflation will come in higher than expected for tomorrow.
Specifically, month-over-month CPI and core CPI are estimated to be 0.47% and 0.51%, respectively. The same is true for year-over-year inflation, with estimates of 7.49% and 6.26%, respectively. If these estimates turn out to be true, stocks will likely fall tomorrow.
Last Updated 2:20PM EST
The consumer discretionary sector (XLY) is the laggard so far, as it is down 0.4%. Conversely, the energy sector (XLE) is the session’s leader, with a gain of 1.9%.
Meanwhile, bond yields are lower, as the U.S. 10-Year Treasury yield is now hovering around 3.57%. This represents a decrease of more than one basis point from the previous close.
Similar movements can be seen with the Two-Year yield, which is now at 4.35%. As a result, the spread between the 10-Year and Two-Year U.S. Treasury yields is still negative, as it currently sits at -78 basis points.
Last updated 9:42AM EST
U.S. stock indices nudged higher early Monday morning ahead of the week of several key economic updates.
The Dow Jones Industrial Average (DJIA) gained 0.3%, while the S&P 500 (SPX) climbed 0.1%, as of 9.42 a.m. EST, Monday. Meanwhile, the Nasdaq 100 (NDX) retracted 0.1%.
Last updated 8:43AM EST
U.S. stock futures rose early Monday morning ahead of a power-packed week of several key economic updates.
Futures on the Dow Jones Industrial Average (DJIA) gained 0.20%, while those on the S&P 500 (SPX) climbed 0.24%, as of 5.42 a.m. EST, Monday. Meanwhile, the Nasdaq 100 (NDX) futures advanced 0.30%.
All eyes will be on November’s Consumer Price Index (CPI) data which is set to release on Tuesday. Another month of cooling inflation could lead to an eased pace of interest rate hikes by the Federal Reserve. This means that the central bank might be able to pull off a soft landing.
Importantly, the Fed is expected to make another interest rate hike on Wednesday. A lower-than-expected interest rate hike combined with cooler inflation could lead to a market rally.
Additionally, the central bank’s Chairman Jerome Powell, is expected to make a speech on the Fed’s updated outlook and how the U.S. economy stands currently. This press conference could provide key insights to investors into how the monetary policy might look in the coming months.
The major indexes ended the past week in the red, as the Dow, the S&P 500, and the Nasdaq Composite dipped 2.77%, 3.37%, and 3.99%, respectively.
The Producer Price Index for November came in higher than expected, much to investors’ dismay. Final demand prices rose 0.3% in November, higher than the expected rate of 0.2%. Nonetheless, traders expect an upbeat CPI report, a sentiment that is reflected in the futures movement.
