Economic & Corporate News

Economic & Corporate News

Inflation Data on the Horizon
Investors are bracing for critical inflation data:

• Producer Price Index (PPI): Scheduled for release Tuesday.
• Consumer Price Index (CPI): Expected Wednesday, with forecasts indicating a 0.3% monthly increase and a 2.9% annual rise in December.
• The Federal Reserve's Beige Book on economic activity will also be released Wednesday, likely influencing policy outlooks.

Fed Survey Highlights Inflation Expectations

• U.S. consumers' median one-year inflation expectations held steady at 3% in December.
• Three-year expectations rose to 3% from 2.6%, while five-year expectations dropped to 2.7% from 2.9%.

Corporate Earnings in Focus
This week marks the start of earnings season for major banks, with results expected from:

• JPMorgan Chase, Bank of America, Wells Fargo, Morgan Stanley, Goldman Sachs, and Citigroup.

Mergers and Acquisitions:

• Johnson & Johnson announced plans to acquire Intra-Cellular Therapies for $14.6 billion in cash to bolster its neuroscience portfolio.
  • Johnson & Johnson shares rose 1.7%, while Intra-Cellular surged 34%.

Energy and Commodities Update:

• Oil: West Texas Intermediate (WTI) crude rose 2.7% to $78.67 per barrel, driven by expanded U.S. sanctions on Russian oil, impacting supplies for India and China.
• Gold: Dropped 1.3% to $2,679.70 per troy ounce.
• Silver: Declined 3.4% to $30.26 per ounce.