Filed under: Before the bell, International markets, Market matters, Citigroup Inc. (C), Economic data, Federal Reserve
Stock futures were lower early morning, ahead of inflation data coming out an hour before the opening bell. It is likely that futures will continue to drift this way and that until the data is reported and only then will we see a clear direction of the session ahead. A speech from Federal Reserve Chairman Ben Bernanke could affect sentiment as well.
On Thursday, stocks started their journey with deep losses due to Carlyle Capital fund announcing it’s near collapse, but later changed direction to finish the day on the positive side. The Dow industrials ended Thursday up 35 points, or 0.29%, the Nasdaq Composite rose 19 points, or 0.88%, and the S&P 500 advanced 6 points, or 0.51%.
The economic calendar today is not busy, but it is meaningful.
- At 8:30 a.m. EDT, February consumer price index will be reported. This closely watched inflation indicator is expected to show inflation rose 0.3% in February, lower that the 0.4% rise in January. Similarly, core CPI, which excludes the more volatile food and energy prices, likely increased by 0.2%, down from January’s 0.3%. Any big surprises that may show inflation at the consumer level is much higher than expected (it is already higher than the Fed’s “comfort zone”) could put a crimp on the Fed’s ability to cut interest rates when it meets next Tuesday. The markets could then have a strong reaction as such rate cuts have been widely expected.
- Then, at 10:00 a.m., the March preliminary University of Michigan’s consumer confidence index is set to be released. Economists expect the to drop to 69.5 from 70.8, according to Briefing.com.
- At 12:30 p.m., Fed chief Bernanke is to speak on sustainable homeownership in Washington, and investors will likely tune in hoping to hear more about the economy and the growing threat of inflation.
Continue reading Before the bell: Investors await inflation data
Permalink | Email this | Comments
