This week’s key metrics will be continuing the discussion from the last. The core Personal Consumption Expenditures index last week showed the fear-inducing reality of disinflation, or the diminishing rate of inflation, possibly even reversing. This is why stocks fell on Friday and have been dropping since the start of February. We will be observing three ITSM survey results this week, with the services survey coming later in the week being less followed than the ISM manufacturing survey being released tomorrow. However, it is more important. We should be perusing the financial media coverage of this to watch the ISM services PMI, which needs to stay balanced. The market doesn’t want to be too hot, which would cause the Fed to raise rates, or too cold, which could lead to a nosedive.
