Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. With the Fed, It’s the Little Things
If the Federal Reserve’s statement were homework, the teacher would hand it back, saying it’s almost exactly what you submitted last time.
There were, indeed, very few changes to the FOMC statement as it kept rates steady. That was reflected in the reaction of stocks, where the S&P sold off right at the release and bounced back just as fast to where it was before the decision.
But investors aren’t grading the Fed on originality. And even the smallest changes will be parsed.
In this case the chatter looks concentrated on the Fed’s new assessment of business fixed investment.
The “growth of business fixed investment has moderated from its rapid pace earlier in the year,” the Fed said in today’s statement.
That contrasted with “business fixed investment (has) grown strongly” in the September statement.
The change indicates that the Fed sees some moderating of the economy, but is content with its slow and steady rate hike pace. That’s sounds a little bearish for stocks, but the market will decide.
2. PPI, Michigan Sentiment on Tap
The market won’t get too long to dwell on Fed language before there are more numbers to digest.
The Labor Department releases its latest measure on wholesale inflation at 8:30 AM ET (13:30 GMT).
Economist predict that the producer price index (PPI) rose 0.2% in October, the same as the month before.
Core PPI, which excludes volatile food and energy prices, is forecast to have risen 0.2% last month, also the same as September's reading.
At 10:00 AM ET, the University of Michigan will release its preliminary measure of November consumer sentiment.
On average, economists expect the index to drop down slightly to 98.
3. Disney Tops Earnings Expectations
The company said after the bell it earned $1.48 a share on revenue of $14.31 billion.
Share rose nearly 2% in after-hours trading.
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