Customers visit the Macy’s Herald Square store on December 17, 2023 in New York City.
Kenabtankur | Corbis News | Getty Images
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see?You can subscribe here.
What you need to know today
Palantir CEO backs Israel
Palantir CEO Alex Karp said his outspoken pro-Israel views led to employees leaving the company, and he expected more to follow. “If you have a position that doesn’t cost you an employee, then it’s not a position,” Karp told CNBC.
House passes TikTok bill
The U.S. House of Representatives has passed a bill that could lead to a ban on TikTok if its Chinese owner ByteDance does not sell its stake in the popular video app. The bill now heads to the Senate, where it faces huge hurdles as senators are divided over the bill.
The electric car hype may be over
Enthusiasm for electric vehicles is waning. Ford, General Motors and Mercedes Benz Some major automakers are scaling back or delaying their electric vehicle plans. That’s because the industry’s growth and adoption rates are slower than previously expected.
(PRO) China stocks are worth the risk
Xu Jie, chairman and chief investment officer of Reliant Global Advisors, said Chinese stocks are “a risk worth taking.” He noted that they were “dealing at the cheapest prices” while offering “significant discounts” and saw a huge opportunity to participate in the market.
bottom line
U.S. consumers have had a rocky start to the year, but a rebound may be around the corner.
February retail sales data will be the focus today and should provide insight into the state of the U.S. economy.
Economists expect strong rebound in consumer spending It fell sharply in January.
Wells Fargo said: “While we expect spending to slow this year, we believe the January slowdown somewhat exaggerated the recent pullback in consumption. Households are still benefiting from a boost in real income, which should continue in the near term. Support spending,” the note read.
“We expect spending to rebound in February, with retail sales rising 0.8%.”
Consumer strength has underpinned overall economic growth and has proven far more resilient than most policymakers and economists expected.
However, sticky inflation can take a toll and pose risks to future growth prospects.
“The case for a gradual but sustained slowdown in consumer spending growth from a strong pace in 2023 is telling,” Pantheon Macroeconomics wrote in a note.
“Most households have exhausted the excess savings accumulated during the pandemic, while credit costs have risen sharply and a collapse in home sales last year has suppressed demand for housing-related retail goods such as furniture and appliances.”
Investors will also be watching February producer price data released today, and any upside surprise like January’s hot data could further complicate the Fed’s inflation picture.
The report is the last major economic data release before the central bank’s policy meeting next week.
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