What is Causing This Pullback?
What is Causing This Pullback?: Start a free trial of The Sevens Report.
What’s in Today’s Report:
- What is Causing This Pullback?
- Yield Curve Update: 10’s-2’s Just Hit a Two-Year High
- EIA Analysis and Oil Market Update
Futures are modestly lower as more mixed earnings are preventing a bounce in stocks.
Tech earnings were “ok” overnight (IBM and NOW posted good results) but other sectors’ results were weak, especially in the auto sector (Ford (F) is down 13% pre-market) and that’s weighing on futures.
Focus will remain on economic data and earnings today and the calendar is busy on both fronts. Economically, the key reports today, in order of importance, are: Jobless Claims (E: 235K), Final Q2 GDP (E: 2.1%), and Durable Goods (E: 0.3%). Goldilocks economic data (so in-line with expectations across the board with no hints of inflation) would be a positive for stocks and help to slow this pullback. But, if data is very soft or very strong, expect more downward pressure.
On the earnings front, results this season are, so far, very mixed and disappointing earnings are weighing on stocks. Important results today include: AAL (E: $1.04), ABBV (E: $2.56), VLO (E: $2.61), LHX (E: $3.18) and BKR (E: $0.49).
Join thousands of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.
