Dow Theory: Transports Sputter, Industrials Power On
Dow Theory: Transports Sputter, Industrials Power On: Start a free trial of The Sevens Report.
What’s in Today’s Report:
- Dow Theory: Transports Sputter, Industrials Power On
- Visual – Existing Home Sales Fall, Home Prices & Inventories Rise
Futures are lower thanks to soft earnings from Mag-7 members TSLA (down 7% premarket) and GOOGL (down 3% premarket) as well as soft economic data in Europe.
The Eurozone’s July Composite Flash PMI fell to 50.1 vs. (E) 51.0 with both the manufacturing and services components missing estimates (German data was notably weak).
Looking into today’s session, the U.S. Flash Composite PMI (E: 51.6) will be the market’s primary focus early in the day but New Home Sales (E: 644K) data is also due to be released shortly after the bell.
From there focus will likely revert to how the Mag-7 trades in the wake of yesterday’s weak tech earnings and follow through selling (like we are seeing in the pre-market) will be a drag on the major indexes.
There is also a 5-Yr Treasury Note auction at 1:00 p.m. ET that could impact markets (yesterday’s strong 2-Yr auction pushed yields lower).
Finally, there are a few notable earnings reports due after the close including: F (E: $0.64), CMG (E: $0.31), and IBM (E: $2.16) and the Fed’s Bowman is scheduled to speak at 4:05 p.m. ET.
Join thousands of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.
