Stock index futures continued lower after the first two out of a long list of economic reports disappointed investors.
Producer prices surged in November, as energy costs pushed up the headline Producer Price Index. The overall PPI jumped 1.8% after gaining 0.3% in October. The jump far exceeded the market forecast for a 1.0% increase. At the core level, the PPI climbed 0.5% after a huge 0.6% drop last month. The market had projected a 0.2% rise for the latest month. Separately, the Empire State Manufacturing Index unexpectedly fell to 2.6 from 23.5 in the previous period. Readings above zero signal manufacturing expansion in the New York region.
November industrial production and capacity utilization numbers will be released at 9:15 am ET, with economists expecting a reading of 0.5% and 71.1% respectively. Both would be constitute improvements over the October numbers. At 1:00 pm ET, the National Association of Home Builders will release its monthly sentiment index.
The latest two-day central bank rate policy meeting gets under way today, concluding Wednesday. The Fed is widely expected to hold the federal funds rate steady at historic lows near zero. But investors are eager to see if the latest policy statement contains any new language that could offer hints as to when the Fed will begin to raise interest rates.
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