Behind the move: deep skepticism among many investors that the Federal Reserve will raise short-term interest rates as high as they did in the last economic expansion-a level that was itself the lowest peak for rates over the past seven decades.
Consumers Get More Pessimistic as Inflation Looms
Consumer perception of current economic conditions in December was almost even with April 2020 levels, when sentiment bottomed out following the first major restrictions to control the coronavirus pandemic.
While Americans' feelings about their personal finances slid through much of 2021, concerns about buying conditions-amid continuing worries about inflation-fell drastically for much of the year.
Elevated Job Openings Show Early Sign of a Pullback
Employers pulled back on demand for workers last month amid signs the economy was starting to cool as the Omicron variant of Covid-19 spread rapidly across the U.S., according to private-sector estimates of job openings.
There were 10.8 million job openings on Jan. 21, according to an analysis of postings by jobs site Indeed, a decrease of more than a million from its estimate for the end of December.
FDA Official Says New Rule Could Boost Blockchain-Based Food Tracking
A Food and Drug Administration official said the regulator is writing new rules that could facilitate the adoption of blockchain technology in the food industry.
The rule, which the FDA expects to complete in November, would require the food industry to maintain records associated with critical tracking events on the supply chain for certain products, according to Frank Yiannas, deputy commissioner for food policy and response at the FDA. Those events include growing, receiving, transforming, creating and shipping food products, according to the proposed rule.
Fed Nominee Has Studied How Policies Affect Economic Opportunities
Economist Lisa Cook has often focused her research on policies that promote broad economic opportunity, particularly for racial minorities and women, an approach she could soon bring to the central bank and its policy making.
President Biden has nominated Dr. Cook, a professor of economics and international relations at Michigan State University, to join the Federal Reserve Board of Governors as it prepares to start raising interest rates in March to fight the highest inflation in decades, while the economy is still healing from a downturn earlier in the Covid-19 pandemic.
Australia Central Bank Ends Key Pandemic Program
SYDNEY-The Reserve Bank of Australia will end a bond-buying program that has anchored its response to the Covid-19 pandemic, given accelerated inflation and a tight job market.
The RBA said Tuesday that this month it will cease its weekly purchases of about 4 billion Australian dollars, equivalent to $2.82 billion, in government bonds. The decision was paired with new economic forecasts showing the unemployment rate is likely to fall below 4.0% later this year, which would be its lowest level since the 1970s.
Canada Says Trucker Vaccine Mandate Hasn't Dented Border Crossings
OTTAWA-Canada's transport minister said a Covid-19 vaccine mandate that targets truckers crossing the U.S.-Canada border has had little impact on the volume of trailers entering the country to deliver goods.
Omar Alghabra made his assessment Monday after a meeting between Canadian officials and members of the trucking industry and other industrial sectors to discuss alleviating logjams in cross-border supply chains.
India Plans More Than $100 Billion Capital Spending
India's government is planning capital spending of 7.50 trillion rupees ($100.60 billion) for the year beginning April, in a bid to create demand and pump prime the economy that had suffered severely due to the Covid-19 pandemic.
The figure marks a 34.4% increase from the current fiscal year's capital expenditure, Finance Minister Nirmala Sitharaman said in parliament Tuesday as she shared her budget proposals.
Germany Retail Sales Tumbled in December Amid Renewed Restrictions
Germany's retail sales swung to decline at the end of 2021, falling sharply amid rising coronavirus cases and the reintroduction of restrictions, the German statistics office Destatis said.
Retail sales in Germany fell 5.5% on month in December, following a 0.6% increase in November.
Threat of Hard-Hitting Russia Sanctions Leaves U.S. Companies Planning for All Scenarios
U.S. companies with interests in Russia are rushing to draw up contingency plans as Washington threatens sanctions should President Vladimir Putin order troops into Ukraine.
In Washington, lawyer Adam M. Smith in recent weeks has been in daily contact with clients, particularly ones in the banking, transportation and oil-and-gas sectors, concerned about how Russia could be targeted.
Write to paul.larkins@dowjones.com TODAY IN CANADA
Earnings:
Imperial Oil 4Q
Economic Indicators (ET):
0830 Nov GDP
0930 Jan Manufacturing PMI
Stocks to Watch:
Frontera Energy and CGX Energy: Joint Venture Has Made a Discovery at Kawa-1 Well, in Corentyne Block Offshore Guyana; Joint Venture Anticipates Spudding Its Second Commitment Well, Called Wei-1, in the Northwestern Part of the Corentyne Block; Joint Venture Has Exercised Its Option to Use the Maersk Discoverer Semi-Submersible Mobile Drilling Rig for the Wei-1 Well
Rogers Communications Says Glenn Brandt Appointed as Chief Financial Officer
Expected Major Events for Tuesday
00:30/JPN: Jan Japan Manufacturing PMI
05:00/JPN: Jan Auto sales
06:00/RUS: Jan Russian Manufacturing PMI
07:00/GER: Dec Retail Trade
07:00/UK: Jan Nationwide House Price Index
07:45/FRA: Jan Provisional CPI
08:45/ITA: Jan Italy Manufacturing PMI
08:50/FRA: Jan France Manufacturing PMI
08:55/GER: Jan Labour market statistics (incl unemployment)
08:55/GER: Jan Germany Manufacturing PMI
09:00/ITA: Dec Unemployment
09:30/UK: Dec Bank of England effective interest rates
09:30/UK: Dec Money and Credit - Lending to Individuals, Lending to Businesses, Broad Money and Credit
09:30/UK: Dec Monetary & Financial Statistics
09:30/UK: Jan CIPS / Markit Manufacturing PMI
12:45/US: Weekly Chain Store Sales Index
13:30/CAN: Nov GDP
13:55/US: 01/29 Johnson Redbook Retail Sales Index
14:30/CAN: Jan Canada Manufacturing PMI
14:45/US: Jan US Manufacturing PMI
15:00/US: Jan ISM Report On Business Manufacturing PMI
15:00/US: Dec Construction Spending - Construction Put in Place
15:00/US: Dec Job Openings & Labor Turnover Survey
16:00/US: Jan Global Manufacturing PMI
21:00/US: Jan Domestic Auto Industry Sales
21:30/US: 01/28 API Weekly Statistical Bulletin
23:50/JPN: Jan Monetary Base
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Tuesday
Advanced Micro Devices Inc (AMD) is expected to report $0.70 for 4Q.
Allegro MicroSystems Inc (ALGM) is expected to report for 3Q.
ArcBest Corp (ARCB) is expected to report $2.20 for 4Q.
Bio-Techne Corp (TECH) is expected to report $1.30 for 2Q.
Block (H&R) (HRB) is expected to report $4.66 for 2Q.
Broadridge Financial Solutions Inc (BR) is expected to report $0.38 for 2Q.
CF Bankshares Inc (CFBK) is expected to report for 4Q.
Catalent Inc (CTLT) is expected to report $0.60 for 2Q.
Corvel (CRVL) is expected to report for 3Q.
Encompass Health Corp (EHC) is expected to report $1.02 for 4Q.
Entegris Inc (ENTG) is expected to report $0.81 for 4Q.
Enterprise Products Partners LP (EPD) is expected to report $0.54 for 4Q.
Evoqua Water Technologies Corp (AQUA) is expected to report $0.04 for 1Q.
Exxon Mobil Corp (XOM) is expected to report $1.96 for 4Q.
FTI Consulting (FCN) is expected to report $1.20 for 4Q.
First Financial (Indiana) (THFF) is expected to report $0.97 for 4Q.
Franklin Resources (BEN) is expected to report $0.88 for 1Q.
Griffon Corp (GFF) is expected to report $0.07 for 1Q.
Hamilton Lane Inc (HLNE) is expected to report $0.80 for 3Q.
Imperial Oil Ltd (IMO,IMO.T) is expected to report $1.31 for 4Q.
Landos Biopharma Inc (LABP) is expected to report for 4Q.
Lennox International Inc (LII) is expected to report $1.98 for 4Q.
MDC Holdings Inc (MDC) is expected to report $2.49 for 4Q.
ManpowerGroup (MAN) is expected to report $2.02 for 4Q.
Mueller Industries (MLI) is expected to report for 4Q.
NVR Inc (NVR) is expected to report $99.77 for 4Q.
PJT Partners Inc (PJT) is expected to report $1.43 for 4Q.
Pitney-Bowes Inc (PBI) is expected to report $0.11 for 4Q.
Premier Inc (PINC) is expected to report $0.53 for 2Q.
PulteGroup Inc (PHM) is expected to report $2.30 for 4Q.
SOPHiA GENETICS SA (SOPH) is expected to report for 4Q.
Scotts Miracle-Gro Co (SMG) is expected to report $-0.74 for 1Q.
Sirius XM Holdings Inc (SIRI) is expected to report $0.07 for 4Q.
Stanley Black & Decker Inc (SWK) is expected to report $1.93 for 4Q.
Starbucks Corp (SBUX) is expected to report $0.78 for 1Q.
SunCoke Energy Inc (SXC) is expected to report $0.22 for 4Q.
United Parcel Service (UPS) is expected to report $3.09 for 4Q.
Unitil (UTL) is expected to report $0.90 for 4Q.
Waters Corporation (WAT) is expected to report $3.41 for 4Q.
loanDepot Inc (LDI) is expected to report $0.09 for 4Q.
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ANALYST RATINGS ACTIONS
Align Technology Raised to Buy From Neutral by UBS
Arcturus Therapeutics Raised to Market Perform From Underperform by Raymond James
Azek Raised to Overweight From Equal-Weight by Stephens & Co.
Badger Meter Raised to Buy From Hold by Maxim Group
Beyond Meat Raised to Overweight From Underweight by Barclays
Booz Allen Hamilton Cut to Underperform From Buy by B of A Securities
Booz Allen Hamilton Raised to Outperform From Market Perform by Raymond James
CACI International Raised to Outperform From Market Perform by Raymond James
(MORE TO FOLLOW) Dow Jones Newswires
02-01-22 0557ET