What’s in Today’s Report:
- Hard Landing/Soft Landing Scoreboard Update
Futures are little changed as markets digest Thursday’s failed rally amidst more conflicting economic data.
Chinese money supply growth missed estimates and again underscored existing recession risks and that modestly weighed on sentiment.
UK economic data was better than expected, however, with GDP (0.2% vs. (E) 0.0%) and manufacturing (2.4% vs. (E) 0.2%) both beating estimates.
Today focus will remain on inflation, as we get headline PPI (E: 0.2% m/m, 0.7% y/y) and Core PPI (E: 0.2% m/m, 2.3% y/y) along with the University of Michigan inflation readings within Consumer Sentiment (E: 71.3). As CPI showed, an in-line inflation number that shows on going and modest disinflation won’t spark a rally, as that’s already priced in, but it will help support stocks around current levels. A hotter than expected number, however, will likely spark another market decline.