What Does “40 Trillion” Mean for Stocks?

What’s in Today’s Report:

• What Does “40 Trillion” Mean for Stocks?

Futures are little changed following generally “fine” tech earnings overnight and as markets await Fed Chair Warsh’s speech.

Tech earnings (MRVL, WDAY) were solid but the tech sector is seeing some profit taking following Thursday’s big NVDA driven rally.

Economically, French Core HICP (their CPI) rose 2.7% vs. (E) 2.4% y/y, further solidifying ECB rate hike expectations.

Today focus will be on Fed Chair Warsh’s commentary (10:00 a.m. ET) and markets will want to hear 1) A firm commitment to get inflation back to 2% but also 2) No hints of a sustained rate hike cycle (a one and done rate hike in September won’t hurt markets).  The key to indicator to watch through the speech is the 10 year Treasury yield, if it rises during or after the speech that will be a negative for markets.