Beat the street: Fed; Powell; PPI; options expiration; Tesla; Pfizer
US stocks are indicated higher after a cooler-than-expected November producer inflation report, ahead of the Fed’s watched final monetary policy decision of the year.
Investors eye Powell’s speech. Brace for some $5 trillion in U stock options, which are set to expire on Friday. Tesla recall. Plus, Pfizer, all-sessions, falls on its forecast.
(AI Video Summary)
Inflation may be cooling, Fed interest rates may steady
In today's episode, Angeline Ong gives an overview of the latest news and information before Wall Street opens for the day. She starts by saying that the US Federal Reserve is expected to keep interest rates steady and mentions Jerome Powell and the dot plot. She also mentions that there are $5 trillion worth of US stock options expiring on Friday, which could cause some ups and downs in the market. Ong then tells us that SpaceX, a company that builds rockets, is now worth around $180 billion, according to Bloomberg News.
Next, Ong talks about some data points. She says that the Producer Price Index (PPI) for November was a bit lower than expected. This means that inflation may be cooling down and the Fed might not need to increase rates anymore. She also mentions the final demand figure was slightly lower than expected, further suggesting that inflation is cooling off. Ong briefly talks about the US dollar and Wall Street, saying that not much has happened there yet.
Analysis with Chris Vecchio
Ong also welcomes tastylive guest analyst, Chris Vecchio, to discuss the Fed and the expiring stock options. Vecchio thinks that Powell will be careful during the Fed meeting and won't say anything too extreme. He also talks about the difference between what the market thinks will happen with interest rates and what the Fed actually does. Vecchio mentions that this could affect treasury yields and the US dollar. He ends by talking about the expiring stock options and how they could make the market more volatile.
SpaceX rockets in value, Tesla and Pfizer shares drop
Ong then gives updates on different stocks. She says that SpaceX's value is expected to go up to $180 billion, while Tesla's shares have gone down because of recalls and investigations into their autopilot feature. The CEO of General Motors is going to talk about their self-driving unit, Cruise, and Pfizer's shares have dropped because their forecasts were disappointing.
Lastly, Ong talks briefly about the CAC index in Europe and how oil prices might be affected by interest rate cuts. She gives a quick update on how Wall Street is doing and finishes the video.
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