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Contrarian Opportunity in Permian Shale Stocks?

What’s in Today’s Report:

  • FOMC and ECB Takeaways (Both Dovish As Expected, But Neither Will Help Stocks Rally)
  • An Opportunity in Permian Shale Energy Stocks?
  • Energy Market Update – Solidly Bullish

Futures are slightly lower following another quiet night as markets look ahead to Chinese exports and bank earnings coming tomorrow.

More progress was made in U.S./China trade talks according to the WSJ and a deal is imminent, but the market already assumes that so it didn’t cause a rally.

Chinese and German CPIs both met expectations.

Today there are two economic reports, Jobless Claims (E: 211K) and PPI (E: 0.4%, 0.2%) but neither should move markets.  So, focus will be on a lot of Fed speak, specifically Clarida (9:30 a.m. ET) and Williams (9:35 a.m. ET) (Bullard and Bowman also speak today but they aren’t considered Fed “leadership”).    If Clarida and Williams talk more about an “average” inflation target, that might put a mild tailwind on stocks as it hints at a more dovish Fed in the future (something we didn’t see in the Minutes yesterday).