Monday's Market Minute: Reaction To Fed Comments

As the dust settles from the Fed this week, we have a few key focal points for investors and traders to keep an eye on. First, the focus is clearly on the Fed after comments from Jerome Powell last week and James Bullard, who suggested we’d see a rate hike as soon as next year – keep in mind, Bullard is not a voting member. In terms of economic data, it’s a busy week; today, we’ll hear from James Bullard, Kaplan, and Williams

 Later in the week, keep an eye on the housing data: both Existing Home Sales and New Home Sales figures will be released. We also have GDP, Durable Goods Orders, Weekly Jobless Claims, and lastly, Friday, the inflation data: Personal Income and Spending. As far as companies reporting quarterly results to keep an eye on, we have Nike NKE, KB Home KBH, and Darden Restaurants DRI to help provide further insight as far as current housing and retail trends. I expect commodities to continue to be a focal point for many. Watch crude oil and copper, both have been coming off recent highs with the indices selling off, and with the U.S. Dollar firming up in reaction to Powell’s comments last week.

Also, keep in mind, while oftentimes commodity prices are seen as a gauge of economic wellness, recent selling appears to be tied to demand concerns related to possible Fed rate hikes. Based on the way we closed out last week, Friday, with the Dow down 500 points, I think the question at this point is: will investors be able to shrug off the inflation concerns and higher rate expectations, or will the Fed Chair’s comments last week be the straw that broke the camel’s back and some of the existing trends we’ve been watching will reverse their course?

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