Don’s Notebook June 13, 2018

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The Federal Open Market Committee is expected to announce a quarter-point increase in interest rates when it publishes its decision at 2:00 p.m. Eastern Time today.

  • If that happens, investor focus could turn to the dot-plot projections for clues concerning further rate hikes.
  • The announcement will be followed at 2:30 p.m. by Chair Jerome Powell’s second press conference since he took the helm at the world’s most important central bank.

The Producer Price Index (PPI) was released by the Bureau of Labor Statistics displayed a 0.5 percent rise in the PPI for May showing large jumps for steel and aluminum and trade services.

  • The PPI measures prices at the producer level before they are passed along to final consumers. A portion of the inflation at the producer level gets passed through to the consumer price index (CPI). By tracking price pressures in the pipeline, investors might anticipate inflationary consequences in coming months.

The International Energy Agency said that OPEC members Iran and Venezuela could lose almost 30 percent of their oil output next year due to economic upheaval, in its first detailed forecast for 2019.

  • The Energy Information Administration (EIA) reports later today on petroleum inventories in the U.S., whether produced here or abroad.
  • These levels of inventories helps determine prices for petroleum products.

In Overnight Markets:

  • MSCI Asia Pacific Index fell 0.4 percent while Japan’s Topix index closed 0.4 percent higher as the yen weakened ahead of the Fed decision.
  • In Europe, the Stoxx 600 Index was 0.2 percent higher at 5:40 a.m. with stocks mostly range-bound as investors awaited monetary updates.

Notable Earnings Reports Today:

  • Sonoma Pharmaceuticals, Tailored Brands, Zedge and Bitauto Holdings
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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.