By Bill Hornbarger, Chief Investment Officer
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Three Things to Watch
- Personal consumption expenditures (PCE) for January will be released on Friday, including the U.S. Federal Reserve’s (Fed’s) favored measure of inflation, core PCE. After the unexpected increase in the Consumer Price Index, inflation is back in the forefront of investors’ concerns. Consensus forecast is for 0.3% month-over-month gains in both overall and core PCE, which would result in year-over-year changes of 2.5% and 2.6%, respectively, indicating continued progress towards the 2% Fed target.
- On the earnings front, what is likely the world’s most closely watched company will report earnings this week. On Wednesday, Nvidia will announce after the market close, representing the next important test for the artificial intelligence sector. Volatility is expected for the stock, but Nvidia’s stock is up more than 70% over the past year on strong revenues and earnings growth. Other companies on the tape include Home Depot, Salesforce, and pizza chains Domino’s and Papa John’s, among others.
- On the data front, the second estimate for fourth-quarter gross domestic product will be released, along with durable goods and personal income. All are expected to show that the economy remains on solid footing.
Three Things to Know
- The MSCI EAFE index of international developed stocks is up 8.02% year-to-date versus the S&P 500’s gain of 2.24%. (Source: Bloomberg)
- There is currently $1.2 trillion in credit card debt, which represents 6.2% of household deposits, near the lowest percentage of the past two decades. (Source: Callie Cox)
- The University of Michigan Expected Inflation Rate for the next five years jumped to 3.5% in February, the highest level since 1995. (Source: Haver)
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.