Here are the most important news items that investors need to start their trading day:
1. Getting pumped
Markets came through with a positive session Wednesday, with all three major indices posting gains. It’s been a shaky new year for stocks, hot off a strong 2023, as investors get their bearings in anticipation of potential Federal Reserve rate cuts. All eyes are on the consumer price index for December, which was released Thursday morning, as well as Friday’s wholesale inflation data. Earnings season is also about to kick off. JPMorgan and Delta Air Lines lead the group that’s set to report before Friday’s opening bell. Citigroup, which is in the midst of a major restructuring, is also set to report Friday – and things aren’t looking so hot. Follow live market updates.
2. Plotting a course
Patrons shop for produce at a Mr. Pina Market in the Brooklyn borough of New York, US, on Tuesday, Dec. 26, 2023.
Victor J. Blue | Bloomberg | Getty Images
Thursday’s fresh batch of inflation data may end up being a little too hot for market doves to handle. Indeed, futures slipped after CPI came in higher than expected, at a 3.4% annual rate. Economists polled by Dow Jones had projected a 3.2% year-over-year increase. While that’s well off the pace that compelled the Federal Reserve to jack up its benchmark interest rate, it’s still stubbornly high. That sentiment could disrupt market expectations, as investors are looking to regain their footing after a bumpy start to 2024, CNBC’s Jeff Cox notes. “The market seems to have gotten excited that the Fed’s going to have to do more than what the Fed thinks in terms of rate cuts now,” said Jack McIntyre, a portfolio manager at Brandywine Global Investment Management. “The market got ahead of itself.”
3. New beginning
Who’s ready for a new era in cryptocurrency? The Securities and Exchange Commission on Wednesday – after a false alarm Tuesday – approved changes to rules that will allow the creation of bitcoin exchange-traded…
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