The Day Ahead, Friday November 9th

With earnings season wrapping up and the FOMC decision behind us, investor focus on Friday will be on the Consumer Sentiment release for November as well as the Producer Price Index for October.  The lack of a near-term catalyst and extreme overbought condition sets the stage for a pull back following the 7% S&P 500 (SPX) rally off the 11/29 low.

1. University of Michigan Consumer Sentiment Release – At 10:00 A.M. EST, the University of Michigan Consumer Sentiment report for the month of November is due out. Current expectations are for a slight fall from October’s 98.6 down to 97.9. However, despite all the market volatility, trade war fears, and political uncertainty, for the most part, consumer confidence and sentiment have not been affected, which is a good sign.
2. Producer Price Index Release – At 8:30 A.M. EST, the Producer Price Index for the month of October is due out. Current expectations are for Headline PPI to rise by +0.2% month-over-month and +2.5% year-over-year, compared to +0.2% and +2.6% respectively in September. Excluding volatile food and energy, PPI is expected to rise by +0.2% month-over-month and +2.3% year-over-year in October, compared to +0.2% and +2.5% in September.

Past performance is not a guarantee of future results. All market data points and expectations are from Bloomberg as of 11/08/2018, and should not be relied upon as current thereafter. All earnings estimates are from Fidelity as of 11/08/2018 and should not be relied upon as current thereafter.