FOMC Minutes: Not as Dovish as the Market Reaction
What’s in Today’s Report:
- FOMC Minutes: Not as Dovish as the Market Reaction
- Retail Earnings Takeaways
- EIA and Oil Market Analysis
Futures are slightly higher on better-than-expected earnings, following an otherwise quiet night of news.
Cisco (CSCO) posted strong earnings and gave positive commentary on tech demand going forward.
Economically, EU HICP (their CPI) met expectations at 8.9% yoy and that reading means a 50 bps rate hike from the ECB is still likely in September.
Today’s focus will be on economic data, specifically the Philadelphia Fed Manufacturing Survey (E: -5.0). If Philly Fed echoes the weak Empire Manufacturing reading and the price indices don’t decline, we’ll see stagflation concerns rise. Other reports today include Jobless Claims (E: 265K) and Existing Home Sales (E: 4.85M) but neither should move markets.
We also get two Fed speakers, George (1:20 p.m. ET) and Kashkari (1:45 p.m. ET), and the market will be looking for any insight on a 50 bps vs. 75 bps hike in September (markets are expecting 50 bps).
