Good morning traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
U.S. stock futures are down ahead of the market open on Friday, as traders react to a key inflation report that showed prices rising faster than expected. The Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) price index, rose 0.6% in January and 5.4% from last year. The “core” PCE, which strips out volatile food and energy components, also rose 0.6% for the month and 4.7% from last year. This indicates that inflationary pressures remain strong and persistent in 2023, despite hopes that they would start to ease.
Investors are keeping a close eye on the PCE report, as it is one of the Fed’s most closely watched inflation measures. The report also showed that consumer spending rose 1.8% last month from December, after falling the previous month. This is another sign that the U.S. economy remains strong, but it could also contribute to further inflationary pressures. Overall, the stock market remains volatile and uncertain, as investors grapple with conflicting economic signals. While the U.S. economy remains strong, inflationary pressures and concerns about future interest rate hikes are keeping investors cautious.
Long Trade Ideas:
- The $SPY is trading well below yesterday’s close as traders and investors digest the most recent PCE data released this morning. We will likely see a bounce of some sort today as we are seeing some early support around ~$395.00 on the $SPY.
Short Trade Ideas:
- While we mentioned a bounce is likely to occur, the current trend is bearish. Some areas we might see sellers could be yesterday’s low of day at $369.25, and VWAP.
Note: Moving averages are reported from the previous trading session and will change during the next trading session.
Friday Economic Events:
PCE Price Index 8:30 am ET – High Volatility Expected
Personal Income and Outlays 8:30am ET
New Home Sales 10:00am ET
Consumer Sentiment 10:00am ET
Baker Hughes Rig Count 1:00pm ET
Fed Speaker Scheduled:
Loretta Mester 10:15am ET
Phillip Jefferson 10:15am ET
James Bullard 11:30am ET
Christopher Waller 1:30pm ET
Susan Collins 1:30pm ET
This article provided by the DailyBubble team should only be considered as informational and/or entertainment by the reader. DailyBubble makes no representation to buy or sell any security or financial instrument within the article. Readers seeking investment advice should seek independent financial advice from a professional, and independently research and verify. The DailyBubble team wrote this article and may express its own opinions therein.