Key Inflation and Fed Events to Watch

What’s in Today’s Report:

• The State of Inflation and Fed Speak After CPI (Key Events to Watch)

Futures are pointing to a rebound from yesterday’s profit-taking pullback amid risk-on money flows in China overnight.

Economically, Chinese Retail Sales surprisingly fell -0.5% vs. (E) +0.8% in October but the weak data was followed by the PBOC injecting $150B into the system in new near-term stimulus measures which helped Asian markets rally overnight.

Meanwhile, Warren Buffet has reportedly accumulated a more than $4B stake in TSMC which is helping semiconductors lead equity markets higher this morning.

Looking into today’s session, traders will be watching economic data early with PPI (E: 0.5%, 8.3%) and the Empire State Manufacturing Index (E: -7.6) due out before the open. For the equity rebound to resume we will want to see another cool inflation print from the PPI release and some signs of stabilization from the Empire release to help ease rising stagflation concerns.

There are also two Fed speakers to watch: Harker (9:00 a.m. ET) and Barr (10:00 a.m. ET). If they maintain a less hawkish tone, the S&P should be able to retest yesterday’s highs near 4,010, a key near-term technical resistance level.