Inflation Expectations Dashboard
What’s in Today’s Report:
- Introducing the Sevens Report Inflation Expectations Dashboard
Futures are modestly lower on disappointing economic data and despite continued strong earnings (AMZN was the latest tech company to post blow out numbers).
China’s April Manufacturing PMI surprisingly dropped to 51.1 vs. (E) 51.7 while German flash Q1 GDP also missed estimates, falling –1.7% vs. (E) 1.5%. Those two numbers imply the global economic recovery may have lost some positive momentum, and that’s why futures are lower this morning.
Today focus will be on inflation via the Core PCE Price Index (1.8%) and the inflation component of the Michigan Consumer Sentiment Index (E: 87.1). But, because the Fed is so committed to inflation being transitory, the numbers will have to be very high (well above 2% in the Core PCE Price Index) to further pressure stocks. We also get one Fed speaker, Kaplan (9:45 a.m. ET), but he shouldn’t move markets.
Finally, earnings season continues and some notable reports today include: XOM ($0.59), ABBV ($2.85), CLX ($1.47), CVX ($0.92), CL ($0.80%).
