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).