The stock market managed to chalk up some modest gains, but nothing major as one would expect ahead of the Fed's rate decision and statement due at 2:15 on Wednesday
Wednesday is going to be a banner day on the economic calendar:
7 AM MBA mortgage data release. 8:15 ADP employment index is released. 8:30 4th qtr GDP expected to show 3.1% annualized growth with a 1.5% deflator. Employment Cost Index also due at 8:30 forecast to show 1% gain. 10:00 Construction Spending forecast to show December gain of .5%. Chicago PMI also due at 10 forecast at 52.
My take is that Q4 GDP will be sufficiently strong to keep the debate on when a recession hits raging on. But we've talked about a number of looming risks, especially in the area of credit. JP Morgan's Jamie Dimon today had a few words on that matter (Read here about Dimon and recession risk).
Ahead of all those eco figures the dollar is stuck at just under $1.30 vs the Euro. Gold is treading water at just below $646. Treasuries nudged a tad higher.
There's minor energy profit taking with crude giving back 37 cents and nat gas lower by 5 cents. Wednesday will be interesting for the liquids. Can crude get itself up to the 50 day moving avg at $58.92? That may largely depend on the DOE and API crude inventory figures that come out at 10:30 ET.
Stock futures are drifting lower. Sandisk (SNDK) got a 10% clobbering on worries profit margins will shrink on a glut of flash memory chips. This whole area of the chip market will get slammed tomorrow no doubt.