Stocks slip as investors eye jobs data, COVID in China
Yahoo Finance's Ines Ferré previews key economic data investors are watching this week and other catalysts that could move markets.
Video Transcript
[AUDIO LOGO]
AKIKO FUJITA: Well, turning now to the broader markets, as investors have a lot to digest this week on both the economic front and of course, what we've been talking about, China. Let's bring in Yahoo Finance's Ines Ferre, who's tracking all of the headlines for us this morning. Ines.
INES FERRE: Akiko, and investors this week will be paying attention to a slew of economic data. But two important ones being the jobs report on Friday, with economists expecting some 200,000 jobs to have been added in the month of November. That's a slowdown from the previous month, but still historically high when you consider the average of 150,000 to 200,000 jobs that were added in 2019.
So you could see a hotter than expected, we'll see what happens with that. But this is important, because the Fed would be taking cues from things like the jobs report. Also another point is the PCE, Personal Consumption Expenditure price index. That's expected to come in at a rate of 6%. Fund managers are saying until you get to 4% for that rate, don't expect the Fed pivot any time soon.
RACHELLE AKUFFO: And Ines, as Akiko was mentioning, the domino effect of China also weighing on investors' minds.
INES FERRE: Yeah, that's right. Because of supply chain issues that Akiko was mentioning, and what multinationals are facing when it comes to those supply chain issues, not just because of the COVID lockdowns there and the protests, but also because of geopolitical issues. And we've heard more and more analysts talking about the geopolitics between China and the US. China cozying up with Russia.
In fact, earlier this morning we had Stephen Roach from Yale University talking about multinationals and how they had made a bet on China to produce their goods mainly in China. And now they are reconsidering those bets. So we have seen analysts talking about a period of deglobalization that we're going to start seeing. Not depending so much on China perhaps. So that will continue to have an impact on supply chain issues, and also on inflation because of that.
RACHELLE AKUFFO: So they all tie together. Ines Ferre, thank you so much.
