What’s in Today’s Report:
- A Tale of Two Markets?
Futures are moderately lower following another disappointing night of earnings.
AMZN became the latest mega-cap tech stock to miss earnings and the stock fell more than 10% after hours. AAPL posted “ok” results and rose 1% overnight.
Economically, the Italian CPI was hotter than expected (11.9% vs. (E) 9.7% yoy) as inflation remains sticky in the EU.
Focus today will be on inflation data, specifically the Core PCE Price Index (0.5% m/m, 5.2% y/y). If this number comes in under expectations, that’ll be a mild positive for markets. Also on the inflation front, the Employment Cost Index (E: 1.2% q/q, 5.0% y/y) will be closely watched by the Fed, while the University of Michigan Five Year Inflation Expectations will be released inside of the Consumer Sentiment report (E: 59.7). If those five-year expectations can drop further below 3%, that will be a positive for markets.
Other notable releases today include Pending Home Sales Index (E: -3.8%) and a few notable earnings results: XOM ($3.88), CVX ($5.02), CL ($0.74).