By Bryan McCormick
Today's economic calendar is short, but two major reports could move markets: the Chicago Purchasing Managers Index and the Agriculture Department's Farm Prices.
Personal Income and Outlays will be reported at 8:30 a.m. ET. Income is expected to rise by 0.4 percent, while spending is expected to gain 0.5 percent. The ideal scenario is for income to rise roughly equally with spending. The most bearish scenario would be for income and spending to fall, with spending falling faster than income.
The Chicago PMI comes out at 9:45 a.m. ET. The consensus forecast for the headline number is 65, down from the last report's 66.8. The range of expectations is very wide, from a bearish 60 to a bullish 71.3. The prices component, which came in at 78.2 in the last report, will be watched carefully for further signs of inflation at the wholesale level.
The Farm Prices report is scheduled to come out at 3 p.m. ET. There is no forecast for the release, which is quite detailed. The data will move not only agricultural commodities and related index products such as the PowerShares DB Agriculture Fund (NYSEARCA:DBA), but also companies tied to farming such as Mosaic (NYSE:MOS), Deere (NYSE:DE), and Monsanto (NYSE:MON).
Disclosure: No position