Markets Still Need Macro Clarity
What’s in Today’s Report:
- Bottom Line: Markets Still Need Macro Clarity
- Weekly Market Preview: The Heart of Earnings Season
- Weekly Economic Cheat Sheet: October Flash PMIs are the Key Report this Week
Futures are modestly lower thanks to underwhelming Chinese economic data and rising global bond yields.
Chinese data disappointed as GDP (4.9% vs. (E) 5.2%), Industrial Production, and Fixed Asset Investment all missed estimates, raising concern about the strength of the Chinese economy.
Global yields are higher as New Zealand CPI spiked to 2.2% (a decade high) while BOE Governor Bailey hinted at a rate hike in December.
Today there are two notable economic reports, Industrial Production (E: 0.2%) and the Housing Market Index (E: 75) and one Fed speaker: Kashkari (2:15 p.m.ET). On the earnings front, the majority of the important reports come later this week but reports we’ll be watching today include: STT ($ 1.92), STLD ($4.95), ZION ($1.38).
However, unless there are major surprises in the data or earnings today, they shouldn’t move markets. So, yields will be the main influence on stocks today and if yields rise throughout the day, expect a stiffening headwind on stocks.
