As we approach today’s opening bell, stock futures are suggesting a mixed start for U.S. equities. Overnight, markets in Asia mostly closed with solid gains. Meanwhile, the major European indexes are in positive territory. Elsewhere, oil prices are flat, with West Texas Intermediate (WTI) hovering around the unchanged mark at about $79.75 a barrel.
Investors are looking toward two key financial reports this week to see if they will give an indication of what the Federal Reserve’s next move might be. On Wednesday, we get the March figures for the Consumer Price Index (CPI). On a year-over-year basis, the consensus is calling for an increase of about 5.3%, versus the 6% reported for the 12 months through February, and 6.4% through January. Notably, the increases have been slowly getting smaller since peaking at 9.1% in June of last year, but they are still well ahead of the Fed’s target of 2%.
This will be followed on Thursday by the Producer Price Index, or PPI. The Street is looking for a 12-month rise of 4.4% through March, compared to 4.6% in February, and 5.7% in January. Market participants are hoping that the central bank is getting close to ending its monetary tightening strategy, and any favorable readings from these two indexes would help support that theory.
Friday brings a few more data points for the Fed to consider, including U.S. retail sales and industrial production figures for March. Also of note, earnings season is about to kick off with a number of major U.S. banks reporting on Friday. These releases, the first since the banking sector became unsettled in March, will give investors a better read on how the industry is dealing with the recent pressures on lenders and how those moves will impact business in the quarters ahead.
Wrapping up Monday’s market action, the Dow Jones Industrials moved up 101 points, or 0.3%, the S&P 500 gained four points (0.1%), while the tech-heavy NASDAQ was virtually unchanged with a decline of three points, or 0.03% percent. – 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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