Here are the most important news, trends and analysis investors need to start their trading day:
1. Wall Street looks steady ahead of expected Fed pivot
Traders work on the floor of the New York Stock Exchange (NYSE) on December 13, 2021 in New York City.
Spencer Platt | beautiful pictures
2. Retail sales still up despite higher prices
Shoppers at the King of Prussia mall in King of Prussia, Pennsylvania, on Saturday, December 4, 2021.
Hannah Beier | Bloomberg | beautiful pictures
Faced with higher prices, the government’s 8:30 a.m. ET report on November retail sales is expected to show a monthly gain of 0.8% compared to the 1.7% increase in October. Last month’s estimated advance would essentially match September and August gains. Trends in retail sales, adjusted for seasonal changes but not for inflation, show consumers Consumers are willing to pay higher prices when it comes to the holiday shopping season.
3. Fed predictions could accelerate faster could pave the way for rate hikes
Jerome Powell, Chairman of the US Federal Reserve, speaks during a House Finance Committee hearing in Washington, DC, on Wednesday, December 1, 2021.
Al Drago | Bloomberg | beautiful pictures
Retail sales are the last big economic report as central banks begin Wednesday the last day of their December two-day meeting. The expected Fed slowdown could set the stage for the first near-zero rate hike in the Covid era. The central bank is also likely to provide a new description of how it views inflation, acknowledging that it no longer sees inflation as transient. Markets will also be watching for any hints as to when the Fed might begin shrinking its $8.7 trillion balance sheet.
4. Biden expected to sign debt ceiling increase ahead of time
WASHINGTON, DC – December 10: U.S. President Joe Biden delivers closing remarks at the White House Virtual Summit for Democracy at the Eisenhower Executive Office Building on December 10, 2021 in Washington, DC.
Chip Somodevilla | Getty Images News | beautiful pictures
House Democrats overcome the debt ceiling increase with a Republican vote, send the measure to the President Joe Biden early Wednesday. He is expected to sign it just hours before the Treasury Department forecasts that it will exhaust its tools to pay off government bills, an outcome that will hit the US economy. The Senate, also controlled by Democrats, approved a party-line increase in the nation’s debt limit on Tuesday afternoon. Once signed, the resolution would raise the debt ceiling to $2.5 trillion, possibly enough to get through next year’s midterm elections.
5. CDC says delta still prevails but omicron spreads fast
Centers for Disease Control and Prevention (CDC) headquarters in Atlanta, Georgia.
Tami Chappell | Reuters
The Covid omicron variant, first detected in southern Africa about a month ago, now make up about 3% of cases in the US, according to data from the Centers for Disease Control and Prevention. While delta remains the mainstream in the US, the CDC says that the highly mutated omicron variant is spreading rapidly. Reply to one Washington Post newspaper The CDC said in a statement about a possible “large wave” of omicron infections in a statement that the scenario described was discussed at a regular meeting with public health officials.
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