The push vaulted the
Dow Jones Industrial Average back above 12,000 again after a two-day hiatus, and the blue-chip index has now moved higher in three of the past four sessions. It's too early (and there's still too much data ahead) to say the Dow's six-week losing streak is in serious jeopardy, but the setup is certainly there.
Wednesday brings a plethora of data, headlined by the consumer price index for May at 8:30 a.m. ET, and expectations are for tame 0.2% increase, slightly than the 0.4% rise in April. The core number, which excludes food and energy (and is often mocked for this reason), is also projected to be a 0.2% bump higher. Ian Shepherdson, chief U.S. economist at High Frequency Economics, expects the headline CPI to be held down by falling gas prices but sees the core rising again because of rents.
"The key driver of the upshift in core inflation from its 0.6% October low to 1.3% in April has been rents, which account for nearly 40% of the index," Shepherdson said in a research note. "The year-over-year rate of increase of owner-equivalent rents has swung from a low of -0.3% in August last year to +0.9% in April."The other key report, according to Shepherdson, is industrial production for May at 9:15 a.m. ET, and he expects output to rise 0.6% with capacity use rising to 77.4% from 76.4% vs. consensus expectations of 0.2% and 77% respectively, according to Briefing.com. "The May industrial production numbers should help steady market nerves after the very disappointing April report," Shepherdson wrote. The other datapoints due Wednesday include the Empire State Manufacturing survey at 8:30 a.m. ET, MBA's mortgage applications data for last week at 7:00 a.m. ET, the National Association of Home Builders Housing Market Index at 10:00 a.m. ET, along with crude inventories for last week at 10:30 a.m. ET. Morning chatter will likely center around Pandora Media (P - Get Report), which will make its public debut on the New York Stock Exchange on Wednesday with the ticker symbol "P." The Internet radio company saw heavy demand for its IPO on Tuesday, pricing an offering of 14.7 million shares at $16 each, and raising roughly $235 million. The company, which is still a loss maker, had started out with a range of $7-$9 per share, then upped it to $10-$12 per share on Friday while also increasing the size of the sale by another million shares. The earnings calendar features Finisar (FNSR - Get Report) after the closing bell. The Sunnyvale, Calif.-based maker of optical networking equipment is expected to post a profit of 33 cents a share in its fiscal fourth quarter ended in April on revenue of $242.8 million.