August CPI numbers mostly met expectations which should delay a Fed tapering decision, however it is becoming increasingly obvious that the transitionary price increases the Fed would speak about earlier this year will become permanent as business have are becoming more and more comfortable charging their customers higher prices. The NY Fed now expects inflation to be elevated the next 1 to 3 years.
The housing market is becoming frothy, and rents are at all-time highs. When the Federal eviction moratorium ends, millions of poor renters will be displaced as many cash-strapped landlords have gone over a year without getting paid.
China economic activity is slowing as new data shows a slump in retail sales and factory activity.
In the US, concerns over higher corporate taxes in the $3.5B bill proposed by House Democrats has investors concerned about future growth and inflation.
Apple (APPL) is up about 0.3% after a lukewarm reception to the unveiling of iPhone 13s. The new phones are underwhelming upgrades of speed, camera accessories and screen sizes but enough to entice many current users to upgrade.
Microsoft (MSFT) is up over 1.3% premarket after announcing a 62 cent per share dividend and a $60B stock buyback program.
California Governor Gavin Newson will make a decisive win with about 2/3s of the votes in special recall election. The election was called after 1.7 million people signed a petition to remove Newson over his handling of the Covid crisis. Newson will hold office until 2023.
The economic calendar includes Empire State and Import Prices @ 8:30am ET, Industrial Production and Capacity Utilization @ 9:15am ET and Oil @ 10:30am ET.
Earnings include Weber (WEBR).
Tuesday’s ES low was 11 points from the daily 50-day moving average (4414.25) making this the ninth time in 2021 the 50-day moving average has held as support in 2021’s uptrend.
Volatility continues to tick up but remains steady with the ES 5-day average daily range now at 48.25 points.
No Size bias as Globex volume was mixed.