As we moved toward today’s opening bell, stock futures were indicating a solid start for the major indexes. Markets in Asia were mixed in overnight trading, but the European indexes were mostly showing modest gains.
This morning, investors got the first of two updates on inflation due out this week from the Bureau of Labor Statistics.
The Producer Price Index for December showed a 0.2% month-over-month increase, coming in below Wall Street’s estimate of a reading of 0.4% which would have equaled November. Meanwhile, the core figure (which excludes food and energy) showed that wholesale prices increased 0.3% last month. Analysts were looking for an increase of 0.2%, which would have matched the November advance.
Tomorrow we’ll get the companion Consumer Price Index for December. Expectations there are suggesting a 2.9% year-over-year increase, up from the 2.7% reported for the 12 months through November. On a core basis, estimates were hovering around 3.3%, which would match November’s 12-month figure.
Moving over to Thursday, the Census Bureau is due to announce its Retail Sales report for last month, where forecasts are indicating a month-over-month increase of 0.6%. This would be a modest downtick from the 0.7% gain reported for November. Conversely, on a core basis (which leaves out automobiles), analysts anticipate an increase of 0.5%, versus 0.2% the month before. That same day, the Department of Labor will release its latest figures for initial unemployment claims. The consensus outlook is suggesting an uptick to 210,000 claims, from 201,000 the week before.
On Friday, we’ll get two key updates on the home construction market. The Census Bureau will release housing starts figures for December, which are expected to approximate 1.330 million units, up from 1.289 million the month before. We’ll also get the latest numbers for building permits, which are a more forward-looking indicator. Estimates there are pointing to a modest dip to 1.46 million, compared to 1.493 million in November.
Summing up Monday’s moves for the major stock indexes, the Dow Jones Industrials jumped 358 points, or 0.9%, while the S&P 500 gained nine points (0.2%). However, the NASDAQ backtracked 73 points (0.4%), marking a fourth-straight day in the loss column. – Mario Ferro
At the time of this article’s writing, the author did not have positions in any of the companies mentioned.
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