Did Powell Really Get More Hawkish on Tuesday?

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What’s in Today’s Report:

  • Did Powell Really Get More Hawkish on Tuesday?
  • EIA Update and Oil Market Analysis

Futures are slightly higher on better-than-expected earnings and following a generally quiet night of news.

Taiwan Semi-Conductor (TSMC) posted solid earnings and that’s helping to offset yesterday’s disappointing ASML report and giving tech stocks (and global stocks) a mild boost.

Looking forward, today is a busy day of data, Fed speak and earnings.

Starting with the economic data, the market needs Goldilocks reports to help stocks and bonds stabilize, which means readings at or below expectations, especially on the price indices in the Philly Fed survey.  Key reports today include:  Jobless Claims (E: 215K), Philly Fed (E: 0.0) and Existing Home Sales (E: 4.18 M).

Turning to the Fed, there are three speakers today:  Bowman (9:05 a.m. ET), Williams (9:15 a.m. ET) and Bostic (11:00 a.m. ET).  Williams is the most important of the three, but if the commentary reinforces there are no near-term rate cuts coming, that will be an incremental headwind on stocks and bonds.

Finally, on the earnings front, the calendar continues to heat up and key reports today include:  TSMC ($1.29), NFLX ($4.51), PPG ($1.86), WAL ($1.70).

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