US futures are in the red again this morning, most importantly for stocks right now, there are a slew of earnings reports today, as far as US economic data goes today, there are two reports on the housing market this morning: FHFA House Price Index (E: 0.3%) and New Home Sales (E: 625K) while the more important release to watch will be the PMI Composite Flash (E: 54.1) due out shortly after the open. and more.
Market Technical Update (Three Support Levels for the S&P 500 and a Line in the Sand for the VIX), but today focus will remain on earnings (which were “ok” overnight and this morning as AXP, PYPL and HON beat) and Italy.
An Overlooked (But Important) Earnings Report, futures are modestly lower thanks to disappointing economic data, today will be a busy day as we get an important economic report, Philadelphia Fed Business Outlook Survey (E: 20.0) and two Fed speakers (Bullard (9:00 a.m. ET), Quarles (12:15 p.m. ET)) who could add to the growing “hawkish” narrative, and more.
US stock futures are down roughly 10 points this morning as yesterday’s big rally and notable post-market gains thanks to strong NFLX earnings are digested and investors look ahead to the Fed Minutes today.
What’s Wrong With Bank Stocks? Futures are bouncing modestly this morning, traders and investors are showing more interest than normal in the US Treasury’s foreign exchange report and more.
Putting the Pullback In Context (We’ve Seen Something Similar Twice This Year): Today focus will turn towards economic data, futures are moderately lower, nothing outright negative occurred over the weekend to cause the resumption of selling and more.
Today we get bank earnings and JPM already released results and beat estimates, while we wait for WFC (E: $1.17) at 8:00 a.m. Economically we get Consumer Sentiment (E: 99.5) and there are two Fed speakers, Evans (9:30 a.m. ET) and Bostic (12:30 p.m. ET) but none of that should move markets.
Sell Off Takeaways: Why We Don’t View It as a Bearish Gamechanger (Yet). Futures are sharply lower as global markets dropped following the Wednesday rout in U.S. stocks, today the key event is the Core CPI report (E : 0.2% m/m, 2.3% y/y) out this morning. This release is even more important than before because if it prints “hot” (core CPI above .4% m/m) that will add to the concern that the Fed is going to get more hawkish and that will add another source of pressure on stocks, which we obviously don’t need right now. Conversely, if this number is inline of a little light, that could provide a catalyst for markets to try and stabilize and more.
Today, we get our first of two notable inflation figures this week: PPI (E: 0.2%) as well as Wholesale Trade (E: 0.8%) and there are two Fed speakers to watch: Evans over the lunch hour (12:15 p.m. ET) and Bostic after the close (6:00 p.m. ET).
The NFIB Small Business Optimism Index eased to 107.9 vs. (E) 108.0 last month, but remains near a record high, with the NFIB already out, there are no additional economic reports in the US today but there are two Fed speakers to watch, one shortly after the open: Evans (10:00 a.m. ET) and one later this evening: Williams (9:15 p.m.ET) and more.