What Number Would Make Core PCE Negative for Stocks?
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What’s in Today’s Report:
- What Number Would Make Core PCE Negative for Stocks?
- EIA and Oil Market Analysis
Futures are modestly lower as EU inflation data disappointed overnight while tech earnings underwhelmed.
Economically, French and Spanish CPIs showed on going disinflation but it was slower than expected (mirroring what we’ve seen recently in the U.S.).
On earnings, CRM and SNOW posted underwhelming earnings and that’s modestly weighting on tech shares.
Today focus will be on the Core PCE Price Index (E: 0.4% m/m, 2.8% y/y) as that’s the most important report of the week. Risk/reward into this number is skewed slightly positive as inflation concerns are already elevated and partially priced in, so it should take a solidly hot number to weigh on markets, while just an “in-line” reading would be welcomed.
Other data notable data today includes Jobless Claims (E: 210K) and Pending Home Sales (E: 0.8%) and we have three Fed speakers, Bostic (10:50 a.m.), Goolsbee (11:00 a.m.) and Mester (1:15 p.m. ET) although barring a major surprise from those reports/speakers, they shouldn’t move markets.
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