The S&P 500 Index ($SPX) (SPY) today is up by +0.61%, the Dow Jones Industrials Index ($DOWI) (DIA) is up by +0.18%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up by +1.51%. December E-mini S&P futures (ESZ25) are up +0.61%, and December E-mini Nasdaq futures (NQZ25) are up +1.44%.
US stock indexes are pushing higher today on strength in technology stocks and rising expectations for a December Fed interest rate cut. Semiconductor and AI-infrastructure stocks are adding to last Friday’s rebound after the sectors retreated on concerns over lofty valuations and whether heavy investment in artificial intelligence will boost profitability.
T-note yields are moving lower today, providing support to stocks, after Fed Governor Christopher Waller said he’s advocating for a December rate cut by the Fed due to concerns about the labor market, and then taking a meeting-by-meeting approach starting in January. The 10-year T-note yield is down -1 bp to 4.05%.
The Bureau of Labor Statistics (BLS) canceled its October consumer price report last Friday and said the November report will be released on December 18. Last Wednesday, the BLS said it would not publish an October employment report and noted that it will incorporate those payroll figures into the November report, set to be published on December 16.
The markets will look to this week’s economic news for direction. On Tuesday, Sep retail sales are expected to climb +0.4% m/m and +0.3% m/m ex-autos. Also, Sep PPI is expected to remain unchanged from Aug at +2.6% y/y, and Sep core PPI is expected to ease to +2.7% y/y from +2.8% y/y in Aug. In addition, The Conference Board’s Nov consumer confidence index is expected to fall by 1.2 points to 93.4. Finally, on Tuesday, Oct pending home sales are expected to climb +0.1% m/m. Wednesday brings weekly initial unemployment claims (expected +6,000 to 226,000), Sep capital goods new orders nondefense ex-aircraft and parts (expected +0.3% m/m), the Nov MNI Chicago PMI (expected +0.2 to 44.0), and the Fed Beige Book.
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