Earnings Offer Mixed Economic Signals
Earnings Offer Mixed Economic Signals: Start a free trial of The Sevens Report.
What’s in Today’s Report:
- Earnings Giving a More Mixed Economic View (Although It’s Still Early)
- Empire State Manufacturing Index Takeaways
- Insight from Oil’s Early Week Collapse
U.S. futures are steady as yesterday’s pullback is digested while overseas markets were mostly lower overnight after ASML’s downbeat guidance weighed on global tech shares and LVMH earnings rekindled concerns about consumers.
Economically, UK Core CPI favorably fell 0.4% to 3.2% vs. (E) 3.5% in September, bolstering BoE rate cut bets.
Today, there is one second-tiered inflation report to watch: Import & Export Prices (E: -0.3%, -0.4%), but barring a big surprise one way or another it is not likely to move markets.
Additionally, there is a 4-Month Treasury Bill auction at 11:30 a.m. ET. A strong auction would be received as dovish and help stocks and other risk assets stabilize in the midst of increasingly hawkish Fed policy expectations in recent weeks.
There are no Fed officials scheduled to speak today but earnings season continues to pick up with results being released by several big financials: MS ($1.57), CFG ($0.79), SYF ($1.77), DFS ($3.29) and a few more economically-sensitive companies PPG ($2.15), CSX ($0.48).
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