Monday, March 13, 2023

Banking drama, slowdown & Fed

Expect additional drama in the coming days over the collapse of SVB (Silicon Valley, Calif., Bank) Financial Group and implications for banking and venture capitalists. Economic earnings report releases will dominate the stocks conversation - with FedEx (FDX) carrying the heavyweight spot - ahead of the March 20-21 Federal Reserve meetingThe consumer price index (CPI) report for February will show a slight moderation (+0.1%) in its inflation rate to +5.6%. Producer prices are forecast to decelerate (-0.3%) for January. Updates from both the Empire Manufacturing Survey and latest retail sales are anticipated to show a slowdown. Industrial production is forecast to see a slight increase. These reports together should be a factor on whether the Fed raises its benchmark interest rate by 25 or 50 points at its meeting later this month. Outside of the Fed drama, FedEx (FDX) and other key earnings reports will include updates from Adobe (ADBE), Dollar General (DG), Lennar (LEN) and XPeng (NYSE:XPEV). The Microsoft (MSFT) event on AI in the workplace will also be an attention-getter. (Seeking Alpha 03/13/23) Wall Street Breakfast: Containing SVB Mess | Seeking Alpha

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