TheStreet’s J.D. Durkin brings you the biggest news of the day, including why gas prices might soon be on the rise.
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00:00 I'm JD Durkin reporting from the New York Stock Exchange.
00:03 Investors are reacting to economic data from Thursday and from Friday.
00:07 The Federal Reserve's preferred inflation gauge, the PCE index, came in roughly in line
00:12 with expectations, revealing an annualized jump of 2.9% in December.
00:17 And fourth quarter GDP also came in higher than expected, underscoring the ongoing resilience
00:22 of the U.S. economy despite higher interest rates.
00:25 Wall Street is also looking ahead to a batch of big tech earnings.
00:29 The January jobs report and of course, the Fed's January policy meeting.
00:33 A decision on short-term interest rates will be made on Wednesday, January 31st.
00:38 Markets are pricing in a near 100% chance that the Fed holds rates steady for yet another
00:43 month.
00:45 In other news, you might want to enjoy cheap gas prices while you still can because analysts
00:49 predict you may soon be paying more at the pump.
00:53 According to the Oil Price Information Service, demand for gas is low despite the cheaper
00:57 prices.
00:58 The firm says during the week of January 15th, gasoline consumption fell to its lowest
01:02 level in the last 12 months.
01:05 The average price of a gallon of gas has hovered right around $3.10 for the month of January,
01:10 28 cents cheaper than it was the same time in 2023.
01:14 The global head of energy analysis for the OPIS explained why prices are about to increase,
01:20 saying quote, "Winter gasoline is perishable.
01:22 Every year the industry has to purge the system of the winter gasoline, which has a lot of
01:27 cheap components in it, and replace it with summer gasoline, which is more difficult to
01:31 make."
01:32 However, oil prices could throw a bit of a wrench into OPIS' analysis.
01:37 The firm says if oil prices crash, the price for gasoline could fall significantly.
01:42 Only two states currently have an average of $4 or more for a gallon of gas.
01:46 California stands at $4.48, while Hawaii has the highest average cost of gas in the U.S.
01:52 at $4.67 a gallon.
01:55 Twenty-eight states currently have average gas prices of $3 per gallon or less.
02:00 That will do it for your daily briefing.
02:02 From the floor of the New York Stock Exchange, I'm J.D. Durkin with The Street.
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