Newscasts - US Markets Briefing: GDP and PCE coming up in holiday-shortened week

Nordstrom

22/11/2024 20:00

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Source: 'Reuters - Business videos'

Description: The week ahead is heavy on data, with GDP and PCE on tap, and
also retail earnings - with Nordstrom, Macy's, Kohl's and Best Buy all
reporting ahead of Black Friday.
Short Link: https://refini.tv/3OlBtE9

Video Transcript:

Indexes track higher again after strong PMI data. Welcome to your US Markets
Briefing. I am Elena Casas. Wall Street looks set to end the week higher as
economic optimism drove stocks upwards. US business activity came in at a
31-month high, according to PMI data from S&P Global. Sentiment is still
strong about the business-friendly policies that could be pursued by the new
administration, while another rate cut in December is seen at a 59%
probability. The data points that policymakers will draw on next week include
the second estimate of Q3 GDP, expected to be unchanged at 2.8%, and the PCE
price index forecast to edge up to 2.3% year-on-year. Those are both out on
Wednesday in what is of course a Thanksgiving-shortened week, with markets
closed on Thursday. There are some results to look out for, though, with
numbers out notably from retailers including Best Buy, Nordstrom, Kohl's, and
Macy's, ahead of the retail calendar's crucial date, Black Friday. This year,
inflation-hit consumers are expected to be more price sensitive, leaving
retailers under pressure to offer discounts. In corporate news, the Supreme
Court dismissed Facebook's appeal against a securities fraud lawsuit, accusing
it of misleading investors about the misuse of user data. The decision leaves
in place a lower court ruling which allowed the case to proceed. Oil prices
are on track for their biggest weekly gain in almost two months, gaining 4%
after the conflict in Ukraine returned a geopolitical risk premium to the
market. Russia used a newly developed hypersonic missile against Ukraine this
week, while Ukrainian attacks on Russian oil infrastructure could disrupt
supply. Earlier, one economist told us he expects Russian supply to continue.

If you remember, when we came into the war in early 2022, there were a lot of
concerns that Russia would be unable to deliver its crude to the market, and
yet we really saw a big recovery in flows, especially into 2023. And so, I
think as of this point, while we have seen a ratcheting in tensions, you will
likely continue to see Russia push a lot of oil towards India, towards China,
and towards Turkey in particular.

And the COP29 summit in Azerbaijan has run into overtime after a draft deal
drew criticism from all sides. It suggested developed nations contribute just
$250 billion by 2035 to help poorer nations adapt to climate change when the
developing countries were pushing for a $1 trillion. And that is your US
Markets Briefing