What the Fed Decision Means for Markets
What the Fed Decision Means for Markets: Start a free trial of The Sevens Report.
What’s in Today’s Report:
- What the Fed Decision Means for Markets
- EIA Analysis and Oil Market Update
Futures are moderately higher on momentum from Wednesday’s post-Fed rally while earnings and data were solid overnight.
Economically, Euro Zone Manufacturing PMI was slightly better than expected (43.1 vs. (E ) 43.0).
On earnings, reports were good overnight with solid reports from ALL, CLX, PYPL, QCOM and others.
Today focus will be on economic data and a big earnings report after the close. Economically, the two notable reports are Jobless Claims (E: 213K) and Unit Labor Costs (E: 0.7%). Of the two, Unit Labor Costs are the more important number and markets will want to see an in-line or lower reading to imply receding inflation risks.
On the earnings front, there are a lot of reports today, but the highlight is clearly AAPL ($1.39) which reports after the close. Other notable earnings include SQ ($0.47) and SBUX ($0.97).
Bottom line, if the market gets more Goldilocks data and solid earnings, this relief rally can continue. But if yields start to rise, don’t be shocked if there’s a reversal.
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