[Insights] (4.10.23) Banks Reports/ CPI/ PPI/ FOMC

Good morning  

US stock futures were mixed on Monday as investors cautiously awaited key inflation data and a raft of corporate earnings reports for the latest quarter.  

Traders will be looking to the latest consumer price index (CPI) on Wednesday, Producer Price Index (PPI) on Thursday and the FOMC minutes for clues on the Federal Reserve’s rate hiking campaign, as well as earnings reports this week from UnitedHealth, JPMorgan Chase, Wells Fargo, Citigroup, and Delta Air Lines. Several FED presidents will be speaking this week including Goolsbee, Harker, Kashkari, Barkin, Daly and Waller.  

Oil prices were little changed, gold fell below $2,000 an ounce & the yield on the US 10-year Treasury note eased to 3.36% to kick off the second week of April, as investors continue to assess the economic and the monetary policy outlook.  

Most investors now see the Fed delivering another 25bps increase in the fed funds rate in May, after the payrolls report continued to point to a tight labor market, with the economy adding 236K jobs and the unemployment rate dropping to near record lows to 3.5%.  

The data is consistent with expectations of a slow-moving recession unfolding in the U.S. – one that doesn’t point to the immediate resolution of inflation concerns, according to Jason Pride, chief investment officer of Private Wealth at Glenmede.