Key Things to Watch This Week: CPI and 10-Year Note Auction

The market is still feeling positive vibes post-Donald Trump’s win. The S&P 500 closed last week near record highs, keeping investors cautiously hopeful about the economy’s future. This week, there are a few key economic releases to keep an eye on that could shed more light on how things are going and where the market might be headed. From inflation numbers to bond auctions, there’s a lot for investors to pay attention to.

Here are 5 things to keep an eye on this week:

CPI Inflation Data
On Tuesday morning, we’ll get a look at the Consumer Price Index (CPI) for November, which is a big indicator of inflation. After some signs of inflation cooling down recently, everyone will be watching this closely. A lower number than expected could boost the market even more and raise expectations of Fed rate cuts. But if we see a surprise spike, it might introduce some volatility and make investors rethink their optimism about interest rate changes.

10-Year Note Auction
Wednesday at 1 pm is when the Treasury will hold its 10-Year Note auction. With all the back-and-forth in bond markets lately and talks about interest rates, this auction will give us a glimpse into how hungry investors are for US government debt. A weak auction could be a sign of trouble in government financing, while a strong one might boost confidence in Treasury securities.

Producer Price Index (PPI)
Thursday’s Producer Price Index will show us another angle on inflation, this time from the producers’ perspective. Sometimes this report can hint at future consumer inflation trends. If we see a lower number than expected, it could back up the idea that inflation pressures are easing, which would be good for market sentiment.

Initial Jobless Claims
Also on Thursday, we’ll get the latest Initial Jobless Claims report, a key indicator of how the job market is doing. We’ve been seeing some small shifts in unemployment claims lately, and this report will give us more insight. A big jump could mean trouble for the economy and push expectations for Fed rate cuts, while a drop might show that the job market is still strong.

Key Earnings Reports
This week brings some important earnings reports that can give us a peek into different parts of the economy. Broadcom will show us what’s happening in the semiconductor and tech infrastructure world, while Costco’s report could tell us about consumer spending and retail health. Adobe will update us on the software and digital media scene. In housing, Lennar and Toll Brothers will give us insights into residential real estate and construction. These reports are coming at a crucial time as investors hunt for signs of economic strength and new growth opportunities.

Good luck this week, and don’t forget to keep an eye out for my daily options article.