Fed Speak and Updated Rate Expectations
What’s in Today’s Report:
- Fed Speak and Updated Rate Expectations
- CPI Takeaways
Futures are slightly lower following mixed economic data, as markets continue to digest increased hopes for an economic “soft landing.”
Chinese exports declined but fell less than expected (-9.9% vs. (E) -11.1%), offering more “not as bad as feared” news.
Today’s focus will switch to earnings (and that’s true for next week too) and key reports today include: JPM ($ 3.11), BAC ($ 0.76), C ($ 1.18), UNH ($5.17), WFC ($0.63) and BLK ($ 8.00). If earnings are better than feared, that should help stocks extend yesterday’s gains.
Economically the focus will stay on inflation with Import & Export Prices (E: -0.9%, -0.7%) and Consumer Sentiment (E: 60.0) while we get another Fed speaker: Harker (10:20 a.m. ET). As has been the case, anything that implies declining inflation and/or a 25 bps rate hike in February will help stocks rally.