Hard vs. Soft Landing Scoreboard: Losing Momentum?

Hard vs. Soft Landing Scoreboard: Losing Momentum? Start a free trial of The Sevens Report.

What’s in Today’s Report:

  • Hard vs. Soft Landing Scoreboard: Losing  Momentum?
  • Richmond Fed Manufacturing Index Falls Sharply: Chart

Stock futures ramped higher overnight amid more Chinese stimulus news, mixed economic data, and strong earnings from streaming giant NFLX which is up 10% premarket.

The PBOC cut bank reserve requirements by 0.40% o/n triggering a 3.5%+ rally in the Hang Seng as growth worries eased while PMI data in Europe was mildly disappointing

Looking into today’s session there is one economic release to watch shortly after the open: PMI Composite Flash (Service PMI: 51.2, Manufacturing PMI: 47.2) and markets will be looking for more “Goldilocks” economic trends in the data in order to hold this week’s gains.

There are no Fed speakers today but the Treasury will hold a 5-Yr Note auction at 1:00 p.m. ET that could move markets, especially if the results are weak and yields move higher as that would become a renewed headwind on growth stocks which have led the latest leg of the rally to all-time highs.

Earnings season continues as well with: T ($0.55), PGR ($2.38), FCX ($0.23), and GD ($3.66) reporting ahead of the bell, while results from TSLA ($0.74), IBM ($3.76), STX (-$0.06), and CSX ($0.44) are due after the close.

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