Beat the street: PCE and Fed speakers eyed; paper M&A; non-chocolate treats this Easter?
In a shortened trading week, investors eye inflation and more comments from Fed speakers. DS Smith says it is in talks with International Paper, prompting hopes of a bidding war for the UK paper and packaging company.
Plus, find out why confectionary manufacturers like Mondolez and Hershey's are producing non-chocolate options in a bid to keep consumers spending this Easter.
(AI Video Summary)
PCE and Fed speakers eyed
In this video, Angeline Ong hosts "Beat the street" and gives us a sneak peek into what will be covered ahead of the Wall Street open. She mentions that she will be focusing on Personal Consumption Expenditures (PCE) and Fed speakers, which are important for investors to keep an eye on because they can affect inflation. She also shares news about a possible bidding war for DS Smith, a UK paper and packaging company.
Market trends
Next, Ong discusses market trends and momentum, pointing out a possible flattening of the trend line. She mentions that a guest predicted a decline in the S&P 500, and she highlights the upcoming long weekend and how it might influence investor sentiment. They also include technical analysis of the Nasdaq 100 by IG's Axel Rudolph. Ong then switches to a live interview with Chris Vecchio from tastylive in New York, where they discuss their trading plans before the long weekend and the lack of significant economic events during that time.
Rising cocoa prices
The conversation then shifts to the rising price of cocoa and how it affects chocolate manufacturers. Ong asks if companies are passing on the cost to consumers, and Vecchio explains that companies like Hershey and Mondelez have programmes in place to protect themselves from high costs by offering non-chocolate Easter products. However, there is expected to be a shortage of cocoa in the long term, which could lead to higher prices.
Rising gasoline prices
They also talk about rising gasoline prices and how they impact consumer spending. Vecchio warns that increasing commodity prices could be a sign of inflation.
Lastly, Ong mentions upcoming economic events like the PCE index, fourth quarter GDP print, and Michigan's consumer sentiment reading.
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