Treasury prices are slightly lower overnight while US equity futures and European stocks rallied (S&P +.92%, STOXX +1.8%) as China has continued to work with US officials on cutting tariffs on American-manufactured cars. In Britain, Teresa May postponed a parliamentary vote on her Brexit deal as she looks to seek more concessions but the EU refused to renegotiate. On the economic calendar, Producer Prices came in slightly better than expected at .1% MoM. Later in the week, the market will be focused on the release of November CPI (Wednesday) and retail sales (Friday).

Chris Eckhoff
Associate, Investment Management Group

12/10JOLTS Job Openings7100707970096960
12/11NFIB Small Business Optimism107104.8107.4
12/11PPI Final Demand MoM0.00%0.10%0.60%
12/11PPI Ex Food and Energy MoM0.10%0.30%0.50%
12/11PPI Ex Food, Energy, Trade MoM0.20%0.30%0.20%
12/11PPI Final Demand YoY2.50%2.50%2.90%
12/11PPI Ex Food and Energy YoY2.50%2.70%2.60%
12/11PPI Ex Food, Energy, Trade YoY2.80%2.80%
12/12MBA Mortgage Applications2.00%
12/12CPI MoM0.00%0.30%
12/12CPI Ex Food and Energy MoM0.20%0.20%
12/12CPI YoY2.20%2.50%
12/12CPI Ex Food and Energy YoY2.20%2.10%
12/12CPI Index NSA252252.885
12/12CPI Core Index SA259.401258.939
12/12Real Avg Weekly Earnings YoY0.90%0.80%
12/12Real Avg Hourly Earning YoY0.70%0.60%
12/12Monthly Budget Statement-$196.0b-$100.5b
12/13Import Price Index MoM-1.00%0.50%
12/13Import Price Index ex Petroleum MoM-0.10%0.20%
12/13Import Price Index YoY1.30%3.50%
12/13Export Price Index MoM-0.30%0.40%
12/13Export Price Index YoY3.10%
12/13Initial Jobless Claims227k231k
12/13Continuing Claims1649k1631k
12/13Bloomberg Dec. United States Economic Survey
12/13Bloomberg Consumer Comfort60.3
12/14Retail Sales Advance MoM0.10%0.80%
12/14Retail Sales Ex Auto MoM0.20%0.70%
12/14Retail Sales Ex Auto and Gas0.40%0.30%
12/14Retail Sales Control Group0.50%0.30%
12/14Industrial Production MoM0.30%0.10%
12/14Capacity Utilization78.60%78.40%
12/14Manufacturing (SIC) Production0.30%0.30%
12/14Markit US Manufacturing PMI5555.3
12/14Markit US Services PMI54.654.7
12/14Business Inventories0.60%0.30%