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) is mulling a bid for US Airways (LCC) or possibly even AMR Corp., the parent company of American Airlines.
PharMerica (PMC) and OmniCare (OCR) 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.
>To contact the writer of this article, click here: Michael Baron.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV