Did Situational Awareness and Earnings Eliminate Tech Concerns?
What’s in Today’s Report:
- Did Situational Awareness and Earnings Eliminate Tech Concerns?
- JOLTS Data Takeaways – Another Goldilocks Labor Report
Futures are mostly higher as markets absorb disappointing guidance from AMD and SPCX amid mixed global economic data overnight with persistent optimism for a U.S.-Iran ceasefire deal capping oil prices and supporting bonds.
Economic data was mixed overnight as China’s Services PMI plunged from 54.1 to 50.4 vs. (E) 53.9 in July, however the EU Composite PMI firmed a full 2 points to 52.0 vs. (E) 51.9 last month, helping tamp down growth worries in the Eurozone.
Today, trader focus will be on economic data early with the July ADP Employment Report (E: 75K) and ISM Services Index (E: 54.5) both due to be released by mid-morning.
There is a 4-Month Treasury Bill auction at 11:30 a.m. ET, and the results of the auction have the potential to shed light on the bond market’s outlook for Fed policy, which could ultimately impact the broader equity market leading into the afternoon.
Additionally, there are two Fed officials speaking today: Cook (4:05 p.m. ET) and Daly (8:35 p.m. ET), but both are not until well after the closing bell.
Finally, earnings continues with notable companies reporting today including LLY ($6.71), SHOP ($0.28), UBER ($0.83), DIS ($1.88), SNDK ($33.28), WDC ($3.24), and MELI ($8.69). As has been the case, investors are demanding to see very robust results in order to reward companies given the current high multiple market environment.
