The S&P/TSX and American Futures are consolidating after they declined for a second session yesterday. The Dow Jones Industrial Average fell 106.77 points (-0.30%) to 35,544, the S&P 500 slid 34.88 points (-0.75%) to 4,634, and the Nasdaq 100 was down 167.65 points (-1.04%) to 15,914. U.S. official data showed that producer prices grew 9.6% on year in November (vs +9.2% expected).
Later today, the Federal Reserve should keep its target rate unchanged at 0.25% but investors expect the Federal Reserve to announce a major shift from its easy monetary policies. Retail sales are expected to advance 0.8% on month in November. The Empire State manufacturing index is expected to decline to 25.0 in December. In Canada, November inflation rate will be expected at 0.3% over month. European equity indices are on the upside. France's November consumer price inflation was confirmed at 0.4% on month. In the U.K., consumer prices rose 0.7% on month in November, vs +0.4% expected. Asian indices closed on the downside except the Japanese Nikkei.
In Australia, the Westpac Consumer Confidence Index declined 1.0% on month in December (vs +0.6% in November). New Zealand's government announced plans to reduce bond issuance by 31 billion New Zealand dollars over four years, and projected a budget surplus by 2024.
Crude oil WTI price is on the downside. International Energy Agency (IEA) said global oil markets would return to surplus and face an even bigger oversupply early next year as the omicron variants affected international travel. The American Petroleum Institute said U.S. crude oil stockpiles dropped 0.815 million barrels for the week ending December 10. The U.S. Energy Information Administration will report official crude inventories for the same period later in the day, with a decrease of 2.082 million barrels expected.
ADVANCE/DECLINE (US) 68% of S&P500 constituents traded lower or unchanged yesterday. 46% of the shares trade above their 20-day moving average compared to 53% Monday (a rate above the 20-day moving average). 68% of the shares trade above their 200-day moving average compared to 69% Monday (a rate above the 20-day moving average). Barclays Maintains Overweight on Starbucks, Raises Price Target to $136 Barclays Maintains Overweight on Southwest Airlines, Lowers Price Target to $65 Barclays Maintains Underweight on Cheesecake Factory, Lowers Price Target to $37