Rates Paused at FOMC, UW Christmas Sale, Nike Earnings, and Three Rate Cuts in 2024
Everything happening in the markets in three minutes or less
Good Evening!
The Federal Reserve on Wednesday, marking the final meeting of the year, continued its pause of interest rates, as of expected.
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Back to the market, one part of this FOMC meeting came as a surprise to many investors, and it was the expected interest rates for 2024 given the dot plots.
What does this show? As seen through the dot plot above, it seems as if rate cuts are ahead in 2024, with median estimates of interest rates dropping by 50 basis points. Jerome Powell’s speech also revealed dovish sentiment, with him expressing that current policy is “well into restrictive territory”, along with stating that the FOMC has been discussing rate hikes.
As for events this week, earnings are mostly quiet, with some names such as FedEx, Nike, and Micron expected to report earnings.
Last Week’s Markets
Markets continue their stretch of gains, marking the seventh continuous week without a decline. The markets rallied heavily after FOMC.
Semiconductors led gains last week following analyst upgrades over gaining artificial intelligence excitement, with Broadcom surging over 17% in the week alone. The S&P 500 surged 2.74% in the last week, the Dow Jones Industrial Average gained 2.90%, and the NASDAQ was up 3.30% for the week.
During FOMC, we held a space regarding the rate pause as it happened live, and what it meant for the market. You can find those here:
Spotify:
Apple:
Notable Upcoming Earnings
Monday
HEI (afterhours) Implied Move: +/- 5.28% Sector: Industrials
Tuesday
FDS (premarket) Implied Move: +/- 4.96% Sector: Financial Services
FDX (afterhours) Implied Move: +/- 4.42% Sector: Industrials
Wednesday
GIS (premarket) Implied Move: +/- 4.01% Sector: Consumer Defensive
MU (afterhours) Implied Move: +/- 4.73% Sector: Technology
Thursday
CCL (premarket) Implied Move: +/- 7.08% Sector: Consumer Cyclical
KMX (premarket) Implied Move: +/- 7.68% Sector: Consumer Cyclical
CTAS (premarket) Implied Move: +/- 4.57% Sector: Industrials
NKE (afterhours) Implied Move: +/- 5.18% Sector: Consumer Cyclical
News of the Week
Millennials are now flocking back to NYC (Read more)
38% of Europeans say they are no longer able to have three meals a day regularly (Read more)
Ukraine could lose war with Russia if U.S delays military aid (Read more)
California likely to see $68 billion deficit next fiscal year (Read more)
Federal Reserve to continue to pause rates (Read more)
Elon Musk planning to start a university (Read more)
U.S consumers are spending at record levels (Read more)
Restaurant prices are up 24% since 2020 (Read more)
Bill Gates says generative AI has plateaued (Read more)
Fed signals 3 interest rate cuts for next year (Read more)
Retail investors are buying the most stock since 2022 (Read more)
U.S Economic Events
Monday
10:00 am Home builder confidence index
Tuesday
8:30 am Housing starts
8:30 am Building permits
Wednesday
8:30 am U.S. current account
10:00 am Existing home sales
Thursday
8:30 am Initial jobless claims
8:30 am GDP (revision)
8:30 am Philadelphia Fed manufacturing survey
10:00 am U.S. leading economic indicators
Friday
8:30 am Durable-goods orders
8:30 am Durable-goods minus transportation
8:30 am Personal income
8:30 am Personal spending
8:30 am PCE index
8:30 am Core PCE index
8:30 am PCE (year-over-year)
8:30 am Core PCE (year-over-year)
10:00 am New home sales
10:00 am Consumer sentiment (final)
Have a great week everyone!
Once again, we hope you enjoy the upcoming holiday season with your families and friends! Checkout out the Christmas sale that ends in a few days if you are interested in trying out our tools or supporting our software!
