Strong economic data continues to worry investors, many of whom had pinned their hopes on Fed rate cuts. Initial claims came in at 216K versus 232K expected. Personal income rose 0.3%, in line and an increase from 0.2% last month. Personal spending rose 0.5%, also in line and an increase from the prior 0.3%.
Last, headline PCE rose 0.2% MoM, as forecast, while core rose 0.3% versus 0.2% expected. The annual prints were 2.1% for PCE and 2.7% for core PCE – a data point which has the algos a little bit more nervous than they already were. It didn’t help that the employment cost index rose 0.8%.
Futures were off sharply overnight, testing the Oct 23 lows before bouncing only a bit on the economic news.
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