On the last full trading day of the holiday week, market players will have to monitor geopolitics along with some major indicators about the U.S. economy.
An avalanche of economic data is scheduled to hit Wednesday morning. Markets are closed Thursday for Thanksgiving Day and the stock market closes at 1 pm EST on Friday.
- The important one is central bank's most favorite inflation measure, the
PCE deflator in the personal income and spending report due at 8:30 a.m. Analysts surveyed by Reuters expect a monthly rise of 0.1 percent for
October. Some economists say investors might take a risk-off approach if the data supported a quicker
pace of Fed tightening after the first rate hike, which Wall Street
increasingly believes will come when the central bank holds a meeting on December 15-16.
- The durable goods report and weekly jobless claims are scheduled for release at 8:30 am. Economists polled by Reuters
expect durable goods to reverse September's fall with a 1.5 percent gain, while the nondefense, ex-air number is expected to rise 0.4
percent. Moody's Analytics predicts only a mildly positive reversal
in durable goods orders as manufacturing difficulties remain "a substantial
drag on growth." Still, they see a strong showing from consumer spending and housing-related areas due to pent-up demand.
- Data on the housing market Wednesday include weekly mortgage applications at 7 am, the FHFA home price index at 9 am and new home sales at 10 am.
- The University of Michigan's final read on November consumer sentiment is due at 10 am. A day earlier, the Conference Board's consumer confidence gauge missed estimates and dropped for a second straight month in November to 90.4.
- The Treasury is to hold a seven-year note auction Wednesday. The only major earnings report expected is Deere, before the bell.
- Crude and natural gas inventories
are both due Wednesday. Energy stocks were the leaders on Tuesday and helped the
major indexes close mildly higher despite earlier declines on morning
news of a downed Russian warplane near the Syrian border.
