The First Slice for Monday, December 16, 2024
Fed’s Rate Cuts, Big Earnings, and the Economy’s Balancing Act
This week, all eyes are on the Federal Reserve as it wraps up its final meeting of the year. Investors are betting on a third consecutive rate cut, which could lower the federal funds rate to 4.50%–4.75%. However, the real action happens after the meeting when Fed Chair Jerome Powell takes the stage. His comments will give investors a clearer picture of what’s next for the economy and how the central bank navigates inflation.
Speaking of inflation, the personal consumption expenditures (PCE) index dropped on Friday, and it’s a big deal. This report measures our prices for goods and services and reveals if inflation is still hot. Coupled with Thursday’s revised GDP numbers, showing whether the economy held steady at 2.8% growth in Q3, the data will help shape expectations about the economic landscape heading into the new year.
Business Spotlight: Micron, Nike, and FedEx in the Limelight
The corporate world isn’t taking a back seat. Micron Technology’s Wednesday earnings report is especially juicy, as the chipmaker secured $6.2 billion through the CHIPS and Science Act to bolster U.S. semiconductor production. Nvidia’s partner has been making waves, nearly doubling revenue in its last quarterly report. Over at Nike, Thursday marks the return of CEO Elliott Hill after a three-year hiatus. With shares down 30% this year, all eyes are on whether the athletic powerhouse can regain its stride.
FedEx also steps into the earnings spotlight on Thursday after slashing its revenue forecasts amid lower shipping volumes. Meanwhile, Accenture is riding a wave of demand for its AI services, particularly generative AI, and will showcase its performance that same day. These reports aren’t just about profits—they’re indicators of how logistics and tech industries adapt to shifting economic currents.
Consumer Watch: From Groceries to Cruises
If you want a peek into the wallet of the everyday consumer, check out General Mills’ report on Wednesday. After a drop in cereal sales last quarter, this earnings release will show how the grocery sector is faring. On the flip side, Thursday brings data on housing with Lennar, one of the U.S.’s largest homebuilders, while Friday’s existing home sales report could give us a broader picture of market trends. For the adventure seekers? Carnival Cruise Line and RV-maker Winnebago close the week, hinting at whether people are spending on experiences or holding back.
It’s a week with clues about the economy’s health—from interest rates to tech innovation to consumer habits. For businesses, investors, and even the average shopper, it’s all connected…………
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