The consumer price index excluding food and energy rose 0.2 percent in December after four straight months of gains of 0.3 percent, according to the median projection in a Bloomberg survey of economists. Core CPI, a better snapshot of core inflation, is expected to have risen 3.3% from a year earlier, the same as readings for the previous three months.

A survey by 22V Research showed that 47% of investors expect the market’s reaction to the CPI to be “risk off”, 29% think “risk on” and 24% said “mixed/negligible “. The survey also showed that 53% of respondents believe that financial conditions should be tightened.

“It appears that higher interest rates or some tightening of financial conditions are needed for the US economy to reach ‘macro equilibrium’ (core PCE closer to 2% and full employment),” Dennis DeBusschere told 22V.

Wall Street is also gearing up for the unofficial start of earnings season, with big bank results due on Wednesday.

Lenders, such as JPMorgan Chase & Co. and Wells Fargo & Co., showed continued gains in investment and trading banking, which helped offset a decline in net interest income caused by higher deposits and sluggish loan demand.

“When it comes to big bank earnings, net interest income is the key data point to watch,” SWBC’s Brigati said. “If banks have been able to take advantage of borrowing at cheaper rates compared to their loan book, that’s a constructive sign for the year ahead.”

Corporate aspects:

• Southwest Airlines Co. is pausing hiring for executive, headquarters and outside workers in a new round of cost-cutting after a row with activist shareholder Elliott Investment Management.

• Meta Platforms Inc. is cutting about 5 percent of its workforce through performance-based layoffs and plans to hire new people to fill their positions this year, according to an internal memo sent to all employees.

• Units of CVS Health Corp., Cigna Group and UnitedHealth Group Inc. they charged far more than the national average cost of acquiring dozens of specialty generic drugs, generating more than $7.3 billion in “excess” revenue over six years, the Federal Trade Commission said. in a report on drug brokers.

• B. Riley Financial Inc. received more demands for information from federal regulators about its dealings with the now-bankrupt Franchise Group, as well as a personal loan for co-founder and president Bryant Riley.

• Capital One Financial Corp. misled customers when it launched a new savings account with a higher interest rate than existing savings accounts, the Consumer Financial Protection Bureau said Tuesday in a lawsuit against the bank.

• United Rentals Inc. agreed to buy H&E Equipment Services Inc. for $3.4 billion in cash, acquiring a fleet of equipment to serve the construction and industrial markets.

• Country Garden Holdings Co. suffered another record loss in 2023 as one of China’s biggest developers continues its lengthy restructuring process after defaulting on its debt.

Key events this week:

• Euro zone industrial production, Wednesday

• Citigroup, JPMorgan, Goldman Sachs, Bank of New York Mellon, Wells Fargo and BlackRock, Wednesday

• US CPI, Empire Manufacturing, Wednesday

• The Fed’s John Williams, Tom Barkin, Austan Goolsbee and Neel Kashkari speak Wednesday

• TSMC earnings, Thursday

• The ECB publishes the account of the December policy meeting this Thursday

• Bank of America, Morgan Stanley earnings on Thursday

• Initial US Jobless Claims, Retail Sales, Import Prices, Thursday

• China GDP, housing prices, retail sales, industrial production, Friday

• Euro zone CPI, Friday

• US housing starts, industrial production, Friday

Some of the main movements in the markets:

stocks

• The S&P 500 was up 0.1% at 4:00 p.m. New York time

• The Nasdaq 100 fell 0.1%

• The Dow Jones Industrial Average rose 0.5%

• The MSCI World index rose 0.2%

• The Bloomberg Magnificent 7 Total Return Index fell 1%

• Russell 2000 index rose 1.1%

coins

• The Bloomberg Dollar Spot Index fell 0.4%

• The euro rose 0.6% to $1.0302

• The British pound was little changed at $1.2206

• The Japanese yen fell 0.3% to 157.97 per dollar

Cryptocurrencies

• Bitcoin rose 2.5% to $96,500.95

• Ether rose 3.3% to $3,217.58

good ones

• The 10-year Treasury yield was little changed at 4.78%

• Germany’s 10-year yield advanced four basis points to 2.65%

• The UK 10-year yield was little changed at 4.89%

Merchandise

• West Texas Intermediate crude fell 1.3% to $77.82 a barrel

• Spot gold rose 0.5% to $2,676.38 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With the assistance of Sujata Rao, Julien Ponthus, Margaryta Kirakosian and Aya Wagatsuma.

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