Capital Economics is line with the consensus on both income and spending but notes that a spending bump of just 0.1% is nothing to get too excited about.
"Although real consumption rose at a half-decent annualized rate in the fourth quarter of 2.0%, spending growth appears to have lost a fair amount of momentum right at the end of the year," the firm said. "This does not bode well for the first quarter of this year."
And lastly, M&A will be featured prominently in Monday's corporate headlines following a report from The Wall Street Journal on Friday that Delta Airlines (DAL - Get Report) is mulling a bid for US Airways (LCC) or possibly even AMR Corp., the parent company of American Airlines.
PharMerica (PMC - Get Report) and OmniCare (OCR - Get Report) will also be active after the Federal Trade Commission moved to block OmniCare's hostile bid for PharMerica, saying it would be bad for consumers.-- Written by Michael Baron in New York.
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