TODAY'S ACTION
7:30 AM CT
PPI for Dec
Prior -0.1% Forecast 0.2%
Core PPI for Dec
Prior 0.1%Forecast 0.1%
Empire Manufacturing for Jan
Prior 1.0 Forecast 4.0
9:30 AM CT
Crude Inventories for 1/11
Prior -2.675M Forecast -1.5M
2:00 PM CT
Fed Beige Book for Jan
This morning traders will get a look at the December PPI numbers before the equities open. Low inflation has been a thorn in Big Daddy's side for over a year now. With the Fed's target rate of 2% a long way of from the 1.1% we saw at the end of last year, some argue that the Fed beer goggles are in fact making the economy look much prettier than it actually is.
TUESDAY RECAP
Yesterday the S&P took back most of Monday's losses closing up +17.80 at 1832.90. For those of you keeping track that's the largest gain of 2014. Retail sales came in at a paltry 0.2% but ex-auto was a strong 0.7%, which was much stronger than market expectations. It appears that good news is actually good news for the market - for now. Also, yesterday Dallas Fed President Richard Fischer compared quantitative easing to beer goggles saying, "We have made for an intoxicating brew as we have continued pouring liquidity down the economy's throat." (That's a keeper)
