Economic Breaker Panel (Some Loss of Momentum)
What’s in Today’s Report:
- Economic Breaker Panel (Some Loss of Momentum)
Futures are moderately lower on disappointing earnings and more negative COVID commentary.
AMZN earnings disappointed investors and the stock was down –6% after hours and that’s weighing on futures.
On COVID, a CDC internal memo called the Delta variant potentially as contagious as Chickenpox, although markets remain generally optimistic given positive corporate commentary on economic activity.
Today the key number will be the Core PCE Price Index (E: 0.5%, 3.7%) which is the Fed’s preferred measure of inflation. If that number runs well above expectations (so above 4% yoy) expect a “hawkish” reaction from markets (yields up, stocks flat to down). Also today we get Consumer Sentiment (E: 80.8) and have one Fed speaker, Bullard at 9:00 a.m. ET, but they shouldn’t move markets.
On the earnings front, much of the discussion this morning is on AMZN but there are some other notable reports out this morning including: PG ($1.08), CAT ($2.38), XOM ($1.02), ABBV ($3.11), CVX ($1.54).
