Here are the most important news, trends and analysis that investors need to start their trading day:
Traders work on the floor of the New York Stock Exchange (NYSE) on December 13, 2021 in New York City.
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Facing higher prices, the government’s 8:30 a.m. ET report on November retail sales is expected show a month-over-month increase of 0.8% compared with October’s 1.7% jump. Last month’s estimated advance would basically match September’s and August’s increases. The trend on retail sales numbers, which are adjusted for seasonal variations but not for inflation, indicate consumers are willing to pay the higher prices heading into the holiday shopping season.
Retail sales are the last major economic report as central bankers on Wednesday head into the final day of their two-day December meeting. The Fed’s expected accelerated tapering could set the stage for its first hike in Covid-era near-zero interest rates. The central bank is also likely to provide a new description of how it views inflation, acknowledging it no longer sees inflation as transitory. The market will also be watching for any hints about when the Fed might start shrinking its $8.7 trillion balance sheet.
House Democrats passed a debt ceiling increase with one Republican vote, sending the measure to President Joe Biden early Wednesday. He’s expected to sign it just hours before the Treasury Department forecasts it would exhaust its tools to pay the government’s bills, an outcome that would upend the U.S. economy. The Senate, also controlled by Democrats, approved the increase to the nation’s borrowing limit along party lines Tuesday afternoon. Once signed, the resolution would raise the debt ceiling by $2.5 trillion, probably enough to get through next year’s midterm election.
The Covid omicron variant, first detected in southern Africa about a month ago, now makes up about 3% of cases sequenced in the U.S., according to data from the Centers for Disease Control and Prevention. While delta remains the dominant strain in the U.S., the CDC said that the highly mutated omicron variant is spreading quickly. Responding to a Washington Post report about a possible “massive wave” of omicron infections as soon as January, the CDC said in a statement that the scenario described was among several discussed at a regularly scheduled meeting with public health officials.