Sevens Reports - Stock Exchange

The Most Important Fed Speech of the Year (So Far)

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What’s in Today’s Report:

  • The Most Important Fed Speech of the Year (So Far)
  • Takeaways from Yesterday’s Sector Performance

Futures are seeing a modest bounce following a generally quiet night of news and head of Powell’s 10:00 a.m. ET speech.

Economically, German GDP declined more than expected, falling –0.3% vs. (E) -0.1%, adding to other hints of stagflation in the global data this week, although Japanese CPI met expectations (3.1% y/y).

There are no notable economic reports today so all the focus will be on Powell’s speech at 10:00 a.m. ET.  Market expectations are that he will signal he’s open to a rate cut in September, essentially reinforcing current market expectations.  If he does not and pushes back on rate cut hopes or ignores policy in his speech altogether, it will be a new market negative.

Finally, mid-season earnings (which have been mixed) continue with two notable reports today: BJ ($1.10), GFI ($0.59).

 

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