China Cut Reserve Requirements
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What’s in Today’s Report:
- China Cut Reserve Requirements. Does that Improve Risk/Reward?
Futures are little changed following a mixed night of earnings and ahead of the ECB rate decision.
Earnings were mixed overnight with cautious TSLA guidance (TSLA down –7% pre-market). This is offsetting other solid tech results from IBM, NOW and others.
Today focus will remain on rates, data and earnings. The key event today is the ECB meeting there is little to no chance of a rate hike or cut. Instead, the key will be insight into when the ECB expects the first rate cut. If it’s before the summer, that’s dovish/bullish. If it’s after the summer that’s hawkish/bearish.
Turning to the data, there are several notable reports today. Including (in order of importance) Advanced Q4 GDP (E: 2.0%), Jobless Claims (E: 200K), Durable Goods (E: 1.0%) and New Home Sales (E: 650K). “Goldilocks” data that meets expectations is the best outcome for stocks.
Finally, earnings season rolls on and important reports today include: AAL ($0.06), LUV ($0.11), VLO ($2.95), SHW ($1.80), INTC ($0.48), V ($2.33), TMUS ($1.90), COF ($2.50).
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