- The stock market ignored multiple bearish factors to record enthusiastic gains on Wednesday.
- The Dow rose more than 115 points, while the S&P 500 set another record high.
- However, a trio of economic data releases could threaten the stock market on Thursday morning.
The Dow, S&P 500, and Nasdaq all rose on Wednesday, even after the Federal Reserve plainly stated that it has no plans to lower interest rates any further in the near future. The stock market also shook off multiple negative trade war headlines, not to mention more evidence that economic growth continues to slow.
The S&P 500 hopped to another all-time high on Wednesday. |Source: Yahoo Finance
Nevertheless, the economy’s data deluge continues on Thursday, and these three releases could haunt the stock market when trading opens on Halloween.
1. Core PCE Price Index (8:30 am)
GDP fell to 1.9% last quarter, but strong consumer data prevented it from falling deeper into dangerous territory. However, consumer data are often lagging economic indicators.
Cracks have already begun to form in the manufacturing and (to a lesser extent) services sectors, and bearish analysts argue that weakness will appear in consumer data next as waning business investment begins to hit paychecks and – before long – household budgets.
Oct. 31 brings multiple fourth-quarter data releases that will take the temperature of the consumer sector, beginning with the Core PCE Price Index reading an hour before the opening bell.
Widely-rumored to be the Fed’s favorite inflation measure, the Core PCE Price Index tracks price changes in consumer goods and services, which also provides insight into spending habits. The last two prints have missed economist estimates,