Earnings Still Matter

What’s in Today’s Report:

  • Earnings Still Matter: What Apple’s Guidance Cut Means for Markets

Stock futures are higher with global shares this morning as new cases of the coronavirus in China continue to fall while hopes for stimulus support tentative risk-on money flows.

China’s government is reportedly connecting IT companies with manufacturing facilities to help supply chain operations return to normal as soon as possible while speculation for more stimulus measures continues to rise.

Looking into today’s session, there are two economic reports to watch: Housing Starts (E: 1.420M) and PPI (E: 0.1%), and a slew of potential Fed catalysts.

The main focus will be the FOMC Meeting Minutes due out at 2:00 p.m. ET however there are also multiple Fed officials schedule to speak: Bostic (8:10 a.m. ET), Mester (8:30 a.m. ET), Kashkari (11:45 a.m. ET), Kaplan (1:30 p.m. ET), and Barkin (4: 30 p.m. ET).

The big risk for the market is any sort of hawkish surprise as investors have priced in a consistently dovish Fed for the foreseeable future and that remains one of the primary support pillars for stocks trading at current multiples.