Monday is shaping up to be pretty quiet on the international economic front while the U.S. data slate will be limited to just one release -- the Wholesale Inventories report for December.
December Wholesale Inventories (Monday, February 25, 10:00 a.m. ET)
- Why it's important
- The report provides insight on monthly trends for sales and inventories among merchant wholesalers across the country.
- The report helps forecast future demand and is used in computing GDP estimates.
- The inventories-to-sales ratio component can provide some insight on pricing power.
- A sustained increase in the ratio would point to a building pressure on prices while a decrease in the ratio would indicate growing pricing power among wholesalers.
- The report typically does not invite a significant response in the market, due in part to long time lag between the release and the period covered by the report.
- A closer look
- November wholesale inventories increased 0.3% on top of an upwardly-revised 0.9% increase in October.
- Wholesale sales decreased 0.6% in November after decreasing 0.6% in October.
- The inventory-to-sales ratio increased to 1.29 in November from 1.28 in October and 1.26 one year ago.
- What's in play?
- Index ETFs
- SPDR S&P 500 ETF (SPY)
- SPDR Dow Jones Industrial Average ETF (DIA)
- iShares Russell 2000 ETF (IWM)