7 Hours Ago
Fed’s big rate policy decision looms. Here’s what to expect on Wednesday
The Federal Reserve is widely expected to hold steady on interest rates when its two-day meeting concludes at 2 p.m. ET.
The real action – and potential market mover – will be how central bank policymakers proceed from here and whether its messaging will hold any clues on the next steps for rates.
Economists and traders will have an eye out for the central bank’s statement, which should have the details on how the Federal Open Market Committee is perceiving the state of employment, inflation and economic growth.
This time, the Fed will also issue its dot plot, a grid of members’ projections for the fed funds rate. This is where market participants might get some insight on where policymakers stand on the expected timing of cuts.
Fed Chair Powell’s press conference, which traders will watch closely, will also offer additional context on the Fed’s decision – as well as where policy may go from here. The event could be a market-moving one.
Read more about the Fed’s big decision here.
–Darla Mercado, Jeff Cox
6 Hours Ago
CNBC Pro: Morgan Stanley says “buy the dip” in these global growth stocks into the year-end
Morgan Stanley has advised clients to get ahead of the next market cycle by buying shares of high-quality growth companies in Asia and emerging markets (EM).
“We believe the market is now in transition to a new cycle that would favor Growth over Value,” the Wall Street bank’s strategists, including Gilbert Wong, said in a note to clients on Dec. 11. “Our suggested strategy is to buy the dip on Quality Growth stocks in [Asia Pacific region excluding Japan, and EM].”
CNBC Pro subscribers can read more about Morgan Stanley’s stock picks here.
— Ganesh Rao
18 Hours Ago
The Federal Reserve will begin interest rate cuts in mid 2024, CNBC survey finds
Respondents to the latest CNBC Fed Survey expect the central bank to begin cutting interest rates in the middle of next year and are more optimistic on the likelihood of a soft landing.
More than half of the 35 economists, strategists and analysts polled by CNBC expect June to be the first month of Fed cuts, while 69% expect another cut in July. The average forecast from respondents calls for roughly 85 basis points of interest rate cuts in 2024.
Meanwhile, soft landing expectations also climbed in the December survey compared to a month earlier. Respondents increased the probability of soft landing to 47%, a basis point increase from November, while trimming the odds of a recession in 2024 by 8 basis points to 41%.
— Brian Evans
6 Hours Ago
CNBC Pro: ‘Large and very profitable’: Analysts like this biotech stock and give it major upside
The biotechnology sector has finally picked up steam after a tough 2022 — and one under-the-radar stock stands out to fund manager Hugh Dive.
Calling it a “very well run, large and very profitable company,” Dive — who is the chief investment officer at the Australia-headquartered Atlas Asset Management — is not along in liking the stock.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
17 Hours Ago
CPI rises 0.1% month over month in November
The consumer price index gained 0.1% in November from the prior month. Economists polled by Dow Jones expected CPI to be flat month over month. On a year-over-year basis, the print came in at 3.1%, in line with expectations.
Excluding energy and food, CPI rose 0.3% month over month and 4% year over year — also matching expectations.
— Fred Imbert
2 Hours Ago
European markets: Here are the opening calls
European markets are set to open in mixed territory Wednesday.
The U.K.’s FTSE 100 index is expected to open 5 points higher at 7,553, Germany’s DAX down 16 points at 16,780, France’s CAC down 6 points at 7,539 and Italy’s FTSE MIB up 10 points at 30,352, according to data from IG.
Euro zone industrial production for October is due, as well as an estimate of U.K. gross domestic product in the same month. Earnings come from Inditex.
— Holly Ellyatt
