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Watchweek
Watchweek

Last week, CPI (Consumer Price Index) data edged slightly below expectations, suggesting a modest moderation in consumer inflation. This week, we’ll get the Fed’s preferred inflation gauge, core PCE (Personal Consumption Expenditures) index, which should paint a clearer picture of what to expect from next week’s Fed meeting. Here’s what’s happening…

  • Q4 earnings season gets into high gear this week, with Netflix reporting earnings after the market closes today, the first of the Magnificent 7 tech companies to do so. Also today: 3M Company, U.S. Bancorp, Fastenal, and United Airlines, followed Wednesday by Johnson & Johnson, Charles Schwab, Prologis, Truist, Kinder Morgan, The Travelers, Haliburton, Teledyne, and Citizens Financial. Thursday earnings are due from GE Aerospace, Procter & Gamble, Abbott Laboratories, Intel, Capital One, Freeport-McMoRan, and CSX, followed Friday by Ericsson, First Citizen Bancshares, Booz Allen Hamilton, and Comerica. *
  • The Fed’s preferred inflation gauge, core PCE (Personal Consumption Expenditures) inflation data for October and November is set to land on Thursday as the Bureau of Economic Analysis works through reports delayed by last year’s government shutdown. The release comes on the heels of last week’s CPI (Consumer Pruce Index) report, which showed inflation continuing to cool. Economists expect the PCE numbers to tell a similar story: consensus forecasts point to roughly 0.2% monthly increases for both headline and core PCE, with year‑over‑year core inflation hovering around 2.8%–2.9%. **
  • Mortgage rates are ticking back up after briefly hitting their lowest level since late 2022. The move comes as the 10‑year Treasury yield climbed on Tuesday, driven in part by market jitters around President Trump’s unexpected bid to purchase Greenland and a sharp selloff in Japanese government bonds that spilled over into U.S. trading. Since mortgage rates loosely follow the 10‑year Treasury yield, the average 30‑year fixed rate edged up to around 6.2% on Tuesday. ***

* NASDAQ

** Investopedia

*** WSJ

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