Coffee With Greta: Key Week


DJIA Futures: -131 (-0.4%)

SPX Futures: +2 (+0.03%)

NASDAQ Futures: +26 (+0.2%)

Good morning friends!

Futures are mixed as Boeing drags down the Dow.

Let’s get right to it!

Important Week

This will be another important week of economic data for the market and the Fed. 

All eyes are on Thursday as the December CPI is set to be released before the market open. 

This will be the final piece of inflation data for 2023 and comes before the Fed meeting at the end of the month. 

Economists expect headline inflation to have picked up slightly at the end of the year while core inflation cooled further. 

CME Group’s FedWatch Tool shows over 95% of traders expect the Fed to keep rates unchanged at the first meeting on January 31 and just under 63% currently expect the first cut at the March 20 meeting. 

Q4 earnings season also officially kicks off with the big banks at the end of the week.

JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC), Citigroup (C), UnitedHealth (UNH), and Delta Airlines (DAL) are all scheduled to report Friday morning. 

Boeing Drops After FAA Grounding

Boeing (BA) shares are down 7.1% ahead of the open after the FAA ordered airlines to ground dozens of Boeing 737 Max 9 aircraft over the weekend. 

The grounding order was issued Saturday after a door plug blew out on an Alaska Airlines (ALK) flight on Friday. 

ALK shares are also down 4.9%.

Grounded aircraft will undergo urgent inspections. 

The FAA said around 171 planes would be affected by the order. 

Alaska Airlines and United Airlines (UAL) are the largest operators of the 737 Max 9 model.

Oil Prices Slide

Oil is starting the new week lower amid sharp price cuts by Saudi Arabia and an increase in OPEC output. 

West Texas Intermediate crude futures are down 3.4% at $71.30 bbl while Brent crude futures are down 3.1% at $76.29 bbl. 

Due to rising supply and competition with rival producers, Saudi Arabia cut the February official selling price of its Arab Light crude to Asia on Sunday. 

That price is now at its lowest level in 27 months. 

A new Reuters survey also found OPEC output rose in December as increased production in Iraq, Angola, and Nigeria offset cuts by Saudi Arabia and other OPEC+ members.

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