Threat of More Rate Hikes? (FOMC Preview)
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What’s in Today’s Report:
- FOMC Preview – The Fed Could Threaten Rate Hikes
- Chart – S&P 500: Support, Resistance, and a Downside Target of 4,785
- BOJ Yen Intervention Update: Not a Market Negative Yet
Futures are lower following mixed international economic data overnight while solid earnings by Samsung Electronics is helping offset negative earnings from European car makers.
In Asia, Chinese PMI data and Australian Retail Sales were net negative, but Eurozone core inflation favorably cooled and GDP firmed easing stagflation worries in Europe.
Today, the busy week of economic data begins with the Employment Cost Index (E: 0.9% q/q), Case-Shiller Home Price Index (E: 0.1%), and Consumer Confidence (E: 104.0) as the Fed meeting gets underway.
Earnings season also remains in full swing with PYPL ($1.24), MCD ($2.70), MMM ($2.08), and KO ($0.69) reporting before the bell and AMZN ($0.81), AMD ($0.61), and SMCI ($5.79) releasing results after the bell.
Bottom line, being the end of the month and the start of the Fed meeting, trader positioning should keep markets relatively quiet today as tomorrow’s FOMC decision looms, but if any of the data comes in “too hot” or “too cold,” expect an uptick in volatility.
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