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3 Things to Watch -Breaking

by Mike Robinson

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© Reuters.

By Dhirendra Tripathi

Investing.com — Tech stocks weighed on the broader market on Tuesday after more data on inflation fanned the flames of fear about the Federal Reserve’s response.

Investors are limiting their investment in growth stocks as they can lose their shine when interest rates rise because the dollar is losing value.

Apple Inc. (NASDAQ:) lost another day and fell below the $3 trillion mark in market value. There’s still time, of course, with holiday sales of new iPhones expected to be strong, according to some analysts, and the anticipated introduction of an augmented reality headphone next year.

The November increase of 0.8% was higher than the expected 0.5%. The year-over-year increase in producer prices was 9.6%. More ammunition for those who fear that inflation will become a serious problem.

The Fed’s policy-setting meeting concludes on Wednesday, with officials expected to announce they will hasten their effort to cut bond buying by doubling the cuts they announced in November. Tapering by $30 billion a month could end the program completely by the spring, clearing the Fed’s path to raise rates.

Other than the Fed announcement at 2:20 PM ET Wednesday, this is otherwise a very quiet period in the calendar. These are the three factors that may impact markets tomorrow.

1. Earnings from homebuilders

Lennar Corporation (NYSE 🙂 will announce its fourth-quarter results Wednesday. Analysts at Investing.com predict that the company will post a profit per share (EPS) of $4.15 for revenue of $8.51billion.

2. Retail sales

Black Friday sales notwithstanding, are seen rising by only 0.8% month-on-month in November, less than half of October’s 1.7% growth. Data will be available at 8:30 ET.

3. Oil inventories

Oil prices fell due to global growth worries triggered by rapid spread of Omicron Covid-19. To gauge the supply and demand, analysts are now looking at inventory reports. 

In the week up to December 10, they fell by 2.6 Million barrels. In the previous week, inventories fell by 240,000 barrels. Data will be released by the Energy Information Administration on Wednesday, at 10:30 ET.

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