FTX hearing, Fed decision, consumer inflation top week ahead
Consumer inflation is seen rising 7.3%
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Investors are bracing for a busy week as Congress probes the FTX fiasco, the Federal Reserve holds its final meeting of the year, and as fresh data on consumer inflation is released.
All of the above may shape market sentiment after three of the major stock market averages fell on Friday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44296.51 | +426.16 | +0.97% |
| SP500 | S&P 500 | 5969.34 | +20.63 | +0.35% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19003.651134 | +31.23 | +0.16% |
For the week, the Dow Jones Industrial Average and the S&P 500 lost over 3%, while the Nasdaq Composite slipped 4%.
FOX Business takes a look at the biggest market-moving events in the coming days.
Monday, December 12
On Monday, UAW's (United Auto Workers) new board will be sworn in after its first-ever direct elections. Many of the new candidates ran on campaigns to shake things up, including backtracking on deals previously agreed with automakers.
Without any earnings of note before markets open, the week kicks off after the bell with earnings from Oracle and Mesa Air Group, which operates planes under the American Eagle, United Express and DHL Express banners.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MESA | MESA AIR GROUP INC. | 0.87 | +0.01 | +0.62% |
| ORCL | ORACLE CORP. | 192.23 | -0.22 | -0.11% |
Tuesday, December 13
Tuesday we will see a house hearing on FTX, whose spectacular collapse under the leadership of Sam Bankman-Fried last month has forced at least one cryptocurrency firm, BlockFi, to follow FTX into bankruptcy and put others on shaky ground.
House Finance Chair Rep. Maxine Waters, D-Calif., said a subpoena of Bankman-Fried over the FTX collapse is "on the table," but hopes he will choose to testify at Tuesday's hearing on his own.
He indicated he will in a Tweet last week.
House Financial Services Chair Maxine Waters said on Friday said she wants FTX founder Sam Bankman-Fried to testify at the panel’s Dec. 13 hearing on the cryptocurrency collapse. (Getty Images / Getty Images)
Economic data being released Tuesday will include the NFIB business optimism index, which while already at a three-month low is expected to fall again. The Consumer Price Index for November, an indicator of inflation, is expected to rise 7.3%, down slightly from the 7.7% jump last month yet still stubbornly high.
Wednesday, December 14
Wednesday brings the Federal Open Market Committee and Chairman Jerome Powell's decision on interest rates at 2 p.m. followed by his press conference. Policymakers are seen raising by 50 basis points, as they continue to battle inflation, which would mark a slow-down in hikes after raising it 75 bps four times in a row.
Federal Reserve Chairman Jerome Powell speaks during a news conference in Washington, July 27, 2022. (AP Photo/Manuel Balce Ceneta / AP Images)
WHOLESALE INFLATION RISES FASTER THAN EXPECTED IN NOVEMBER AS HIGH PRICES PERSIST
Also, Delta Air Lines will give a strategic update ahead of the busy holiday travel season at 10 a.m.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DAL | DELTA AIR LINES INC. | 63.30 | -0.03 | -0.05% |
Wednesday will also mark 50 years since mankind last walked on the moon as part of the Apollo 17 moon landing.
People watch as the Artemis I unmanned lunar rocket lifts off from launch pad 39B at NASA's Kennedy Space Center, in Titusville, Florida, on Nov. 16, 2022. (Marco Bello/AFP via Getty Images) / Getty Images)
NASA'S ARTEMIS I ROCKET LAUNCHES ON HISTORIC JOURNEY TO THE MOON
Economic data reports will include mortgage applications, import prices, export prices, and the EIA weekly crude stocks.
Thursday, December 15
Thursday will mark the deadline of Sen. Chuck Grassley, R-Iowa, for Elon Musk to send an updated threat assessment of Twitter’s security systems on certain vulnerabilities that existed before Musk's acquisition.
Thursday is also the House Energy and Commerce Committee deadline for Ticketmaster to give a briefing about its failures during the release of the Taylor Swift Eras tour.
Ticket sales for Taylor Swift's upcoming concert have drawn congressional scrutiny. (Sarah Morris/FilmMagic via Getty Images / Getty Images)
TAYLOR SWIFT FANS SUE TICKETMASTER OVER CONCERT TICKET FIASCO
Following the Federal Reserve's interest rate decision on Wednesday, the European Central Bank will announce its decision on rates.
Earnings on Thursday will include Adobe and Jabil Circuit.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ADBE | ADOBE INC. | 512.15 | +7.71 | +1.53% |
| JBL | JABIL INC. | 131.09 | +0.41 | +0.31% |
Thursday's economic data will include initial jobless claims, retail sales, industrial production and business inventories.
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Friday, December 16
Friday will see a second FTX hearing on a motion regarding releasing the full list of creditors to FTX, which would include names and email addresses.
Friday will also mark the last day of a stop-gap funding bill for the federal government, leaving three options, a government shutdown, the passing of a new budget, or another stop gap bill pushing the problem to the new year.
The last of the earnings for the week will occur before markets open from Accenture, Darden Restaurants and Winnebago, the manufacturer of motorhomes and Chris-Craft boats.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ACN | ACCENTURE PLC | 358.55 | -2.51 | -0.70% |
| DRI | DARDEN RESTAURANTS INC. | 167.68 | +3.06 | +1.86% |
| WGO | WINNEBAGO INDUSTRIES INC. | 58.93 | +0.43 | +0.74% |
Additionally, several IPOs are on the docket. Bullfrog AI Holdings, SONDORS Inc., and Erayak Power Solution Group Inc. are all expected on the 12th or 13th. While, ParaZero Technologies Ltd., Nava Health MD Inc., Cadrenal Therapeutics Inc., and CBL International Limited are expected on the 15th or 16th.
This week will also see Finland resume testing at its Olkiluoto nuclear reactor, a power plant meant to open in 2009.
With the United States looking at nuclear as an option to reduce carbon emissions, investors will be keeping a close eye on the development and hiccups involved in new-build nuclear power plants.