US: Powell's testimony and economic releases in the limelight - TDS

Analysts at TDS suggest that Fed Chairman Powell's second day of congressional testimony before the Senate Banking Committee is scheduled to begin at 10:00 ET though his comments are likely to echo Tuesday's session.

Key Quotes

“NY Fed President Dudley is also scheduled to speak on trade and globalization during an 11:00 ET event. Markets will have plenty to chew on from the data front with PCE, manufacturing PMI, and vehicle sales on the calendar.”

“Core PCE for January should prove the most important for markets and TD looks for a below-consensus 0.2% m/m increase (market: 0.3%), due largely to soft healthcare prices, though rounding leaves our forecast for core PCE inflation in line with the market at 1.5% y/y. We are also slightly below the market on headline PCE and look for 0.3% m/m and 1.6% y/y (market: 0.4% m/m, 1.7% y/y).”

“Personal incomes and spending should each post a 0.2% gain (market: 0.3% and 0.2%, respectively). We are also below consensus on ISM manufacturing for February, where we look for a pullback to 58.3; the market expects a more modest decline to 58.6. TD looks for February auto sales to slow to an annualized 16.8m units (market: 17.2m). Lastly, the market looks for jobless claims to remain subdued at 225k, up 3k from the prior week.”