Serving Core PCE, retail earnings as turkey appetizers
Main U.S. indexes gain; Dow out front, up ~0.8%
Cons disc leads S&P 500 sector gainers; Comm Svcs weakest group
Dollar rallies; bitcoin, crude, gold all add >1%
U.S. 10-Year Treasury yield edges down to ~4.41%
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SERVING CORE PCE, RETAIL EARNINGS AS TURKEY APPETIZERS
Whether they are planning on digging into turkey or Tofurky at the U.S. Thanksgiving table on Thursday, investors will first need to clear their plates of October's Core Personal Consumption Expenditures (PCE) reading, due out on Wednesday and some retail earnings reports.
In the holiday shortened week, when some market participants take time off, Gene Goldman, Chief Investment Officer at Cetera Investment Management is watching out for the market reaction to PCE, the Federal Reserve's preferred inflation measure.
"In a lightly traded volume week, the biggest potential market mover is core PCE, which may exceed the Fed's year-end target," said Goldman. "If it does, that puts more pressure on the Fed to not cut rates as much."
After consumer price index (CPI)and producer price index (PPI) data, released last week, showed that progress toward lower inflation was stalling, economists increased their expectations for Core PCE.
Economists currently expect a 2.8% increase year-over-year up from an expectation for 2.6% in September, according to data from LSEG. And even if PCE is in line with the raised estimate, the market may react negatively as investors consider how this could change the Fed's dot plot, according to Goldman.
Other economic data scheduled to be served up ahead of Thanksgiving include new home sales on Tuesday, and October's durable goods reading and third quarter GDP data both due out on Wednesday.
On the earnings reporting front, retailers are expected to shed some light on consumers' inclination for spending in the quarter ahead of the holiday shopping season.
Holiday shopping, unofficially, begins the day after Thanksgiving - known as Black Friday because the hope is that this is the day retailers books turn from red to black.
Retail earnings reports scheduled for next week include Bath & Body Works BBWI.N, Nordstrom JWN.N, Macy's M.N, Kohls Corp KSS.N, Best Buy BBY.N and Burlington Stroes BURL.N.
(Sinéad Carew)
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