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
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV