• U.S. consumer spending accelerated in December as households bought motor vehicles and cold weather boosted demand for utilities amid a rise in wages, pointing to sustained domestic demand that could spur economic growth in early 2017.
• The Commerce Department said consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.5 percent after gaining 0.2 percent in November. The rise was the biggest in three months and in line with economists' expectations.
• Consumer spending increased 3.8 percent in 2016 after a 3.5 percent rise in 2015. With domestic demand firming, inflation showed some signs of picking up last month. The personal consumption expenditures (PCE) price index rose 0.2 percent after edging up 0.1 percent in November.
• The core PCE is the Fed's preferred inflation measure and is running below its 2 percent target. However, other inflation measures are above the PCE price indexes. The consumer price index (CPI) is currently at 2.1 percent on a year-on-year basis and the core CPI is up 2.2 percent.
• The dollar wobbled early on Tuesday after tumbling overnight against the yen, which benefited from its safe-haven status as U.S. President Donald Trump's tough stance on immigration rattled investors and curbed risk appetite.
The dollar was down 0.1 percent at 113.670 yen JPY= after dropping more than 1 percent overnight, when it was knocked off its perch above 115.000.
The euro was flat at $1.0707 EUR=. The common currency had clawed back from an 11-day low of $1.0620 on Monday, helped by data showing German consumer price inflation hit the highest in 3-1/2 years and nearing the European Central Bank's price stability target of just under 2 percent.
• U.S. crude futures settled down 54 cents, or 1 percent, at $52.63. Global benchmark Brent crude oil prices were down 32 cents at $55.20 a barrel at 2:33 p.m. ET (1933 GMT).
Oil prices fell on Monday as news of another increase in U.S. drilling activity spread concern over rising output just as many of the world's oil producers are trying to comply with a deal to pump less in an attempt to prop up prices.
Reference: Reuters, CNBC
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