Are Bad IBM Earnings a Warning for Broader Tech?
What’s in Today’s Report:
- Are Bad IBM Earnings a Warning for Broader Tech?
- Takeaways From the “Cool” June CPI Report
Futures are tentatively higher with tech stocks leading thanks to strong quarterly earnings from AI-sensitive ASML (a major global producer of chip-making components) overnight, rekindling a sense of AI-enthusiasm while geopolitical uncertainty continues to simmer.
Economically, Chinese data was mixed as Retail Sales and Industrial Production beat, but GDP and Fixed Asset Investment missed, sending mixed signals about Chinese growth.
Looking into today’s session, the second critical inflation report of the week is due out before the open: PPI (E: -0.1% m/m, 6.2% y/y) as is the Empire State Manufacturing Survey (8.6). Investors will be looking for more signs of cooling inflation and stability in the manufacturing sector in order for stocks to continue higher today.
Additionally, there are a handful of Fed speakers today including: Williams (8:45 a.m. ET), Warsh (10:00 a.m. ET), Cook (1:00 p.m. ET), and Musalem (6:30 p.m. ET). focus will be on Warsh who will continue with his semi-annual Congressional testimony on Capitol Hill today (the less-hawkish, the better for stocks).
Finally, earnings season continues to get underway today with JNJ ($2.85), PGR ($4.58), BLK ($12.72), MS ($2.89), UAL ($1.89), and JBHT ($1.71) all due to deliver quarterly results over the course of the day. Earnings expectations are high leaving limited room for disappointment.
