#core cpi

U.S. stock futures climbed on Thursday following the release of cooler-than-expected November inflation data. The Consumer Price Index report — the first published since congressional Democrats’ lengthy government shutdown concluded last month — revealed a headline year-over-year inflation rate of 2.7%, per the Bureau of Labor Statistics. Core CPI, stripping out volatile food and energy prices,…

(Source: U.S. Inflation Calculator)*The latest inflation data (12-month based) is displayed in the chart’s final column Wall Street took a turn on Thursday as investors shifted their focus. The S&P 500 pulled back from its record high after a slightly lower than expected U.S. inflation report. With interest rates expected to stay low, investors sold tech giants like Apple, Nvidia, Microsoft, and…

Stocks have been off to a very rocky start this year. In fact this is the single worst January for stocks ever recorded. It seems that everything is in turmoil. From oil (NYSEARCA:USO) (NYSE ARCA:OIL) to the US markets (NYSEARCA:SPY) to international markets to currencies and more. That said, gold bugs are definitely shining given the recent performance of the Yellow metal (NYSEARCA:GLD). Friday’s market performance was one of the better days and traders are hoping that the momentum can carry into the coming week.

Key Data To Be Watched

The upcoming week will offer some indications as to the status of the economy and will set the trading sentiment based on the numbers out. The Data to be released includes, MBA Mortgage Index, FOMC minutes, PPI for January, Core CPI, Industrial Production, Housing Starts, Building Permits, and Initial Claims. Housing starts, industrial production, and CPI are the most important indicators and will play a major role in determining the directions of the markets.

Housing starts data for January will be announced on February 17. In December, it fell 2.5% unexpectedly. The consensus expectation is 1.175 million units while Wells Fargo & Co (NYSE:WFC) is looking for 1.151 million units driven by new construction in single, as well as, multifamily. The sentiments of homebuilder also remained high. The same day Industrial Production data for January will be disclosed. After contracting 0.4% in December, the consensus calls for 0.3% uptick while Wells Fargo expects 0.4% growth.

Consumer Price Index

In December, CPI fell 0.1% hurt by energy, as well as, food prices though YOY growth was 0.7%. As a result of the direct impact of the energy prices, core CPI would have continued to be lower on Month-on-Month basis though it would have grown 0.7%. Therefore, the current expectation is that CPI would have fallen 0.1% in January.

Last week, the market reacted to the Fed’s observation that the financial markets volatility might delay another hike in interest rates as the Central Bank was busy assessing the impact of the domestic economic sluggishness. Retail data, which was released on Friday, provided some favorable numbers of higher spending by the Americans. The Greenback witnessed gain of 0.5% and 0.8% against the Japanese currency and Euro respectively.