Ahead in Markets
S&P 500 futures rose 0.1%, Nasdaq 100 futures were largely steady, and Dow futures down 0.1%.
U.S. jobs report ahead
The labor market report is expected to reveal that the US economy added jobs at a slower pace in February, with nonfarm payrolls rising by 198,000 from 353,000 in January. Average hourly wage growth is expected to cool to 0.2%, and the unemployment rate is expected to match the previous reading of 3.7%.
The Federal Reserve is closely monitoring labor demand figures to gauge potential signs of easing demand and cooling inflation pressure. The labor picture in the world’s largest economy appears solid but softening, with private payrolls, job openings, and unemployment claims suggesting a cooling of upward pressure on inflation from wage growth.
Powell says Fed “not far” from confidence in inflation path
Powell, in his second day of testimony on Capitol Hill, emphasized the Fed’s confidence in the inflation path, stating that it is “not far” from having the necessary confidence that price gains are sustainablely moving towards its 2% target. He emphasized that when this confidence is achieved, the level of restriction will be adjusted to prevent the economy from going into recession.
The comments by Powell suggest that rate cuts are likely this year, causing markets to push back their expectations. CME Group’s FedWatch Tool indicates that the Fed is not expected to cut rates until its June meeting. Analysts at ING note that the focus now shifts to data after Powell’s dovish guideline.
Costco Miss earnings
Costco’s second-quarter revenue missed expectations due to a decrease in demand for higher-priced items due to a more cost-conscious consumer. High inflation and high interest rates have led to a reduction in spending on big-ticket items like electronics and furniture, while Costco, a bulk-seller, has been somewhat unaffected.
Costco reported a 6% increase in quarterly revenue to $58.44 billion in the three months ending February 19, but below estimates of $59.16 billion, due to a shift in the fiscal calendar and a decrease in gasoline prices, while shares in the company fell in premarket U.S. trading.
Economic Calendar
- 7:00 AM Fed’s Williams Participates in Moderated Discussion
- 8:30 AM Nonfarm Payrolls for February
- 8:30 AM Private Payrolls for February
- 8:30 AM Manufacturing Payrolls for February
- 8:30 AM Unemployment Rate for February
- 8:30 AM Average Hourly Earnings for February
- 1:00 PM Baker Hughes Weekly rig count data
Other Key Events:
- BMO Capital 19th Annual Real Estate Conference, 3/7-3/9, in New York
- DA Davidson Best-of-Breed Bison Conference 3/8 (virtual)
- China PPI Y/Y, CPI Y/Y and CPI M/M for February
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The labor market report is expected to reveal that the US economy added jobs at a slower pace in February, with nonfarm payrolls rising by 198,000 from 353,000 in January. Average hourly wage growth is expected to cool to 0.2%, and the unemployment rate is expected to match the previous reading of 3.7%.The Federal Reserve is closely monitoring labor demand figures to gauge potential signs of easing demand and cooling inflation pressure. The labor picture in the world’s largest economy appears solid but softening, with private payrolls, job openings, and unemployment claims suggesting a cooling of upward pressure on inflation from wage growth.
Powell says Fed “not far” from confidence in inflation pathPowell, in his second day of testimony on Capitol Hill, emphasized the Fed’s confidence in the inflation path, stating that it is “not far” from having the necessary confidence that price gains are sustainablely moving towards its 2% target. He emphasized that when this confidence is achieved, the level of restriction will be adjusted to prevent the economy from going into recession.The comments by Powell suggest that rate cuts are likely this year, causing markets to push back their expectations.
CME Group’s FedWatch Tool indicates that the Fed is not expected to cut rates until its June meeting. Analysts at ING note that the focus now shifts to data after Powell’s dovish guideline.Costco Miss earningsCostco’s second-quarter revenue missed expectations due to a decrease in demand for higher-priced items due to a more cost-conscious consumer.
High inflation and high interest rates have led to a reduction in spending on big-ticket items like electronics and furniture, while Costco, a bulk-seller, has been somewhat unaffected.Costco reported a 6% increase in quarterly revenue to $58.44 billion in the three months ending February 19, but below estimates of $59.16 billion, due to a shift in the fiscal calendar and a decrease in gasoline prices, while shares in the company fell in premarket U.S. trading.
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