Morning Notes Jan. 29, 2018

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Personal Income and Outlays Report was issued this morning.

This report breaks out December’s consumer numbers, including inflation data, from last week’s fourth-quarter GDP report. Personal income rose 0.4 percent in December with wages and salaries up 0.5 percent. Spending also rose 0.4 percent in December with November revised 2 tenths higher to a 0.8 percent gain. There was a 1 tenth dip in the savings rate to a 13-year low 2.4 percent which follows a downward revised 2.5 percent rate in November (2.9 percent initially reported).

  • The MSCI Asia Pacific Index slipped 0.1 percent.
  • Japan’s TOPIX index closed 0.1 percent higher as investors waited for data this week.
  • Stoxx 600 Index was 0.2 percent lower at 5:40, with consumer staples the worst-performing sector.
  • S&P 500 futures slipped 0.3 percent

The big economic number this week is the January payrolls data on Friday but there are some other important releases today.

  • At 8:30 a.m., the core PCE deflator, Federal Reserve’s preferred inflation gauge, is published: expectations are for it to remain unchanged at 1.5 percent.
  • Personal spending is projected to slow to 0.4 percent, with incomes rising 0.4 percent.
  • The U.S. is expected to publish a list of Russian oligarchs with connections to Vladimir Putin later today, with the risk of increased sanctions putting pressure on that country’s bonds.

Traders this week will be watching for more of the big-name stocks that are announcing earnings. GOOGL, AAPL, AMZN, BABA, FB and MSFT are among the market leaders that are scheduled.

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Dr. Don Pratl is Director of Trader Development and Education for TradeStation. He joined TradeStation in 2016 after holding similar roles with other online brokerages. Don’s long career in the financial services industry reflects expertise in administering trading and investment strategy programs for retail investors as well as financial services professionals. Since the 1980s, he has held various positions in areas including CBOE trading floor order execution, marketing, sales, personnel management, training and customer service. Don holds series 3, 4, 7 and 63 FINRA licenses, earned his Ph.D. in Organization and Management, and his M.A. and B.A. in Political Science. He has been an occasional adjunct college instructor since 2004 at a range of institutions, teaching undergraduate, graduate and doctoral students using in-class and online formats.