It will be an eventful week on the macro front for investors and Federal Reserve watchers. November inflation data and a monetary policy decision will be the highlights.
On Tuesday morning, the Bureau of Labor Statistics will report the November Consumer Price Index. Economists on average are predicting the headline index to be 7.3% higher than a year earlier, compared with a 7.7% rise through October. The Core CPI, which excludes food and energy components, is forecast to be up 6.1%, versus 6.3% a month earlier.
The Federal Open Market Committee concludes a two-day meeting on Wednesday afternoon. Markets are expecting an increase of 0.5 percentage point in the fed-funds rate, to a target range of 4.25% to 4.50%, following four-straight 0.75 point hikes. The FOMC will also publish its latest Summary of Economic Projections.
Earnings highlights this week will be Oracle on Monday, Lennar on Wednesday, and Adobe on Thursday. Winnebago Industries, Darden Restaurants, and Accenture will all go on Friday.
Other economic data out this week will include the Census Bureau’s retail sales data for November on Thursday. The European Central Bank will announce a monetary policy decision on Thursday. A 0.5 percentage point hike is the consensus prediction.
Monday 12/12
Oracle reports earnings for its fiscal second quarter. Analysts are looking for $1.17 per share, down from $1.21 a year ago.
Tuesday 12/13
Photronics, ABM Industries, Transcontinental, and PHX Minerals announce quarterly financial results.
The House Financial Services Committee meets for an initial hearing investigating the collapse of FTX, the cryptocurrency exchange. FTX founder Sam Bankman-Fried recently told The Wall Street Journal that he couldn’t explain what happened to billions of dollars that FTX customers sent to the bank accounts of his trading firm, Alameda Research.
The Bureau of Labor Statistics releases the consumer price index for November. Economists forecast that the CPI will show an increase of 7.3%, year over year, following a 7.7% jump in October. The core CPI, which excludes volatile food and energy prices, is expected to be up 6.1%, compared with 6.3% in October.
Wednesday 12/14
The Federal Open Market Committee concludes its final two-day meeting of the year. “The time for moderating the pace of rate increases may come as soon as the December meeting,” Chairman Jerome Powell recently said.
Lennar, Nordson, and Trip.com report quarterly results.
The Bureau of Labor Statistics releases its Export Price index, which is believed to have fallen 0.85% in November, after a 0.3% drop in October. Import prices are expected to be down 0.6%, after a 0.2% dip in October.
Thursday 12/15
Adobe and Jabil host earnings conference calls.
The European Central Bank begins its two-day policy meeting in Frankfurt.
The Philadelphia Fed Index, a monthly measure of manufacturing activity, is released. Economists expect a negative 11.5 reading for December, compared with a negative 19.4 in November.
The Census Bureau reports retail sales data for November. The consensus call is for consumer spending to be flat, month over month, while sales excluding autos are seen gaining 0.3%. Both figures rose 1.3% in October.
The Federal Reserve releases November industrial production figures, which measure the output of factories, mines, and utilities. Expect a 0.10% seasonally adjusted rise, after a 0.10% drop in October. Manufacturing production is expected to be up 0.15%, in line with October’s increase. Capacity utilization is expected to be 79.8%, compared with 79.9% in October.
Friday 12/16
Winnebago Industries, Darden Restaurants, and Accenture host earnings conference calls.