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☆ Futures rise as Treasury yields take a breather; eyes on inflation data
▼ + stars: | 2023-09-29 | by ( Ankika Biswas | Shashwat Chauhan | ) www.reuters.com time to read: +3 min

(Reuters) - U.S. stock index futures advanced on Friday as Treasury yields eased from multi-year highs and powered gains in growth stocks, while investors awaited a crucial inflation metric to assess the outlook for the Federal Reserve’s monetary policy. REUTERS/Brendan McDermid/File PhotoApple, Microsoft, Tesla, Alphabet, Amazon.com and Nvidia advanced between 0.7% and 1.5% in premarket trading as two-year and 10-year Treasury yields declined. “A move lower in bond yields has given equity markets a much-needed reprieve,” said Tim Waterer, chief market analyst at KCM Trade. With fears of high oil prices fueling inflation, investors are awaiting the U.S. central bank’s preferred inflation metric, the personal consumption expenditures (PCE) price index, which is seen increasing 0.5% in August against a 0.2% gain in July. The core rate, which excludes the volatile food and energy components, is expected to have increased 0.2% in August, similar to July’s reading.

Persons: Brendan McDermid, ”, Tim Waterer, ” Waterer, Thomas Barkin Organizations: Reuters, Federal, New York Stock Exchange, REUTERS, Microsoft, Nvidia, KCM Trade, Traders, Dow e, Nasdaq, Federal Reserve Bank of Richmond, Democratic, Dow, Nike Locations: New York City, U.S, Riding

Excluding volatile food and energy components, the core PCE price index rose 0.1% in August month-on-month, compared with estimates of 0.2% advance. Consumer discretionary led gains among the major S&P 500 sectors, rising 0.9%. But the sector is set to emerge as the only major S&P 500 sector to notch monthly gains. The S&P 500 and the Nasdaq are poised for their worst monthly showing of the year amid uncertainty around interest rates. The S&P index recorded one new 52-week high and five new lows, while the Nasdaq recorded 25 new highs and 109 new lows.

Persons: Brendan McDermid, ”, David Russell, “ It’s Organizations: Reuters, Nasdaq, New York Stock Exchange, REUTERS, Commerce Department, Apple, Microsoft, Nvidia, University of Michigan Consumer, Energy, Dow Jones, Dow, Democratic, Traders, JPMorgan Hedged Equity, Nike, Dick’s, Goods, NYSE Locations: New York City, U.S

FILE PHOTO:Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. Excluding volatile food and energy components, the core PCE price index rose 0.1% in August month-on-month, compared with estimates of 0.2% advance. The S&P 500 and the Nasdaq are poised for their worst monthly showing of the year amid uncertainty around interest rates. Riding the current of higher crude prices, energy is set to emerge as the only major S&P 500 sector to notch monthly gains. The S&P index recorded no new 52-week high and two new lows, while the Nasdaq recorded 21 new highs and 60 new lows.

Persons: Brendan McDermid, ”, Kim Forrest, “ Organizations: Reuters, New York Stock Exchange, REUTERS, Commerce Department, Bokeh Capital Partners, Apple, Microsoft, Nvidia, University of Michigan Consumer, Dow Jones, Nasdaq, Energy, Dow, Democratic, Traders, JPMorgan Hedged Equity, Nike, Dick’s, Goods, NYSE Locations: New York City, U.S, Riding

(Reuters) - U.S. stock index futures inched higher on Tuesday ahead of a Federal Reserve monetary policy meeting and as investors awaited grocery delivery app Instacart’s Nasdaq debut to assess a potential recovery in the IPO market. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., August 29, 2023. Arm Holdings last week had a stellar market debut, raising hopes of a bounce back in the initial public offering (IPO) market. Investors will closely monitor the Fed’s quarterly report on economic projections to gauge participating members’ longer-term policy outlook. While most of the key data releases on inflation are out, investors will keep an eye on U.S. housing data for August, due at 8:30 a.m.

Persons: Brendan McDermid, ”, Matthew Morgan, Alyssa Henry Organizations: Reuters, Federal, Nasdaq, New York Stock Exchange, REUTERS, Inc, Arm Holdings, Fed, Jupiter Asset, Traders, Dow e, Block, CVS Health Corp, ISI, Intel Locations: New York City, U.S, “

☆ Wholesale inflation ticked up last month, exceeding expectations
▼ + stars: | 2023-09-14 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +2 min

New York CNN —Wholesale inflation accelerated for the second month in a row, mirroring a similar trend in the Consumer Price Index report, the Bureau of Labor Statistics reported Thursday. The Producer Price Index, a key measure of price changes at the wholesale level, rose to 1.6% from 1.3% for the 12 months ending in August. Stripping out the more volatile categories of food and energy, core PPI rose 2.2% on an annual basis in August, in line with economists’ expectations. The PPI is a closely watched inflation gauge, since it captures average price shifts upstream of the consumer. But this week’s inflation data is unlikely to push the Fed to raise interest rates at its meeting next week.

Persons: Price, uptick, ” Raymond James ’, Eugenio Aleman Organizations: New, New York CNN, of Labor Statistics, PPI, July’s, Thursday’s PPI Locations: New York, July’s

☆ Wall St Week Ahead Hopes of 'Goldilocks' economy, rate peak buoy US stocks
▼ + stars: | 2023-07-28 | by ( David Randall | ) www.reuters.com time to read: +5 min

The S&P 500 is up nearly 19% this year after gaining around 1% in the past week. At the same time, investors believe the Fed is unlikely to deliver much more of the monetary policy tightening that shook markets last year. A test of the economy comes next week, when the U.S. reports employment numbers for July. The tech-heavy Nasdaq 100 is up nearly 44% year-to-date, while the S&P 500 information technology sector has gained nearly 46%. The S&P 500 tech sector now trades at 28.2 times forward earnings, from 19.6 at the start of the year.

Persons: Brendan McDermid, Jerome Powell, Bob Kalman, Torsten Slok, Burns McKinney, Randy Frederick, wouldn't, David Randall, Ira Iosebashvili, Deepa Babington Organizations: New York Stock Exchange, REUTERS, Federal, Miramar Capital, Apollo Global Management, Meta, Roku Inc, NJF Investment Group, Apple, Microsoft, Schwab Center, Financial Research, Thomson Locations: New York, U.S, Miramar

☆ Bad news for the Fed: American workers are becoming less productive
▼ + stars: | 2023-06-14 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

But what does the Fed mean when it talks about labor markets and their impact on inflation? What’s happening: At its most basic level, labor productivity is a measure of the value of the goods and services produced by a company compared with the amount of labor used to produce that output. Labor productivity decreased 2.1% in the first quarter of 2023, the US Bureau of Labor Statistics reported earlier this month. The silver lining: The good news is technological innovations typically drive upturns in productivity and AI could be such an innovation. Absolutely not,” Yellen said, echoing the joint statement leaders from the Group of Seven made at last month’s summit in Japan.

Persons: Lisa Shalett, ”, Lisa Cook, Joseph Brusuelas, Sundar Pichai, aren’t, Jeffrey Sonnenfeld, Richard Blumenthal, “, Doug McMillon, Roger McNamee, Steven Spielberg, Vito Corleone, Janet Yellen, ” Yellen, Elisabeth Buchwald, Yellen, Biden Organizations: CNN Business, Bell, New York CNN — Federal Reserve, Morgan Stanley Wealth Management, Fed, Labor, US Bureau of Labor Statistics, BLS, McKinsey Global Institute, Federal, RSM US, of America, Google, Yale School, Management’s, Leadership Institute, Walmart, Technology, Financial, International Monetary Fund, Inter, American Development Bank group’s, African Development Fund, IMF Locations: New York, United States, Michigan, Connecticut, China, Japan

☆ Premarket stocks: Markets may be overly optimistic about the Fed
▼ + stars: | 2023-06-05 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

Economists say that could mean more rate hikes from the Federal Reserve are coming, but investors appear sanguine. That makes it more difficult for the data-dependent Federal Reserve to justify a pause to interest rate hikes at its June meeting. It has been very strange and certainly our own expectations were that the labor market would deteriorate more than it has. So you have a strong consumer and strong labor market essentially supporting each other for the time being. “That level is more consistent with a 2% growth economy and a 2% inflation economy, not a 4% inflation level economy,” Moynihan added.

Persons: CME’s FedWatch, Bell, Seema Shah, Powell, It’s, there’s, it’s, Brian Moynihan, “, ”, Moynihan, ” Moynihan, Brent, Mark Thompson, Michelle Toh, ” Prince Abdulaziz bin Salman Organizations: CNN Business, Bell, New York CNN, Federal Reserve, Federal, Reserve, Asset Management, Fed, Bank of America, CBS, Reuters Locations: New York, United States, Europe, Asia, Americas, Saudi Arabia, OPEC, China, Saudi

☆ Breakingviews: Powell leads markets on a needlessly wild ride
▼ + stars: | 2023-03-08 | by ( Ben Winck | ) www.reuters.com time to read: +4 min

WASHINGTON, March 8 (Reuters Breakingviews) - The market is quickly getting to grips with a new Jerome Powell. That’s different from what investors expected from the Fed just two months ago. As investors’ perception of Powell takes a U-turn, upcoming economic data could make for a bumpy transition. Yet investors largely expected the central bank to raise by a little less, and start cutting later in 2023. He repeated the comment to the House Financial Services Committee, adding that the Fed hasn't yet reached a decision on its next rate increase.

☆ Powell leads markets on a needlessly wild ride
▼ + stars: | 2023-03-08 | by ( Ben Winck | ) www.reuters.com time to read: +4 min

That’s different from what investors expected from the Fed just two months ago. As investors’ perception of Powell takes a U-turn, upcoming economic data could make for a bumpy transition. Yet investors largely expected the central bank to raise by a little less, and start cutting later in 2023. Powell has repeatedly emphasized that the Fed’s rate decisions will rely heavily on the latest economic data. He repeated the comment to the House Financial Services Committee, adding that the Fed hasn't yet reached a decision on its next rate increase.

☆ Stubborn inflation puts Fed on deadline
▼ + stars: | 2022-11-10 | by ( Ben Winck | ) www.reuters.com time to read: +3 min

NEW YORK, Nov 10 (Reuters Breakingviews) - Inflation is coming down in the United States, but is still too high for comfort. The year-over-year inflation rate eased more than expected – economists polled by Refinitiv had expected 8% - but the cost of food, energy, and housing still increased dramatically. Fed Chair Jerome Powell warned on Nov. 2 that there’s a risk that expectations of higher inflation become entrenched. When Americans expect higher inflation, businesses are inclined to raise prices and workers are liable to ask for higher wages, which amplifies the increase still further. If Powell really wants to tackle the fear of inflation as well as inflation itself, something bolder might be in order.

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