Morning Juice – US Session Prep

Morning, Traders!
It is Thursday the 12th of December, here are some things to look out for today.

Sentiment
US stock futures indicated a slightly worse Wall Street session, as Treasury yields increased ahead of the Federal Reserve’s policy meeting next week.

Contracts on the S&P 500 and the Nasdaq 100 fell.
Both indices rose sharply yesterday, as an in-line US inflation reading reinforced swap markets’ views of a quarter-point rate drop at the Fed’s December 17-18 meeting.

Traders are now waiting for US producer inflation data, which is due later this morning, as well as the weekly jobless claims report, for more signals on pricing and the economy’s health.

The European Central Bank is expected to decrease policy rates by a quarter-point, following the Swiss National Bank’s surprise 50-basis-point cut earlier today.
With an ECB cut – its fourth this year – already baked in, traders will wait for clues from rate-setters on the extent of loosening needed in this cycle.

The ECB cut will be the latest in a series of steps by major central banks this week to ease policy.
Prior to the Swiss rate cut, Canada lowered its policy rates by half a point, Australia hinted at cuts, and China promised rate cuts.
However, Japan has indicated that it is not in a hurry to raise interest rates.

Docket
08:30 ET
US PPI for November
YoY – Median Forecast: 2.6% | Prior: 2.4% | Range: 3% / 2.4%
MoM – Median Forecast: 0.2% | Prior: 0.2% | Range: 0.4% / 0.1%
Core YoY – Median Forecast: 3.2% | Prior: 3.1% | Range: 3.3% / 3%
Core MoM – Median Forecast: 0.2% | Prior: 0.2% | Range: 0.4% / 0.1%

US Weekly Jobless Claims
Initial Claims – Median Forecast: 220k | Prior: 224k | Range: 240k / 190k
Continued Claims – Median Forecast: 1.878M | Prior: 1.871M | Range: 1.96M / 1.85M

11:30 ET
US sells $80 bln 4-Week Bills

13:00 ET
US sells $22 bln 30-Year Bonds

Speakers
08:45 ET
ECB Press Conference with President Lagarde following the ECB Rate Decision

Earnings
16:15 ET
Broadcom Q3 2024 Earnings
Est. EPS: $1.39
Est. Rev: $14.07B

Costco Q3 2024 Earnings
Est. EPS: $3.81
Est. Rev: $61.98B

Good luck!