Is the Outlook Turning More Negative: Market Checkup

What’s in Today’s Report:

• Is the Outlook Turning More Negative? (Market Checkup)
• Chart: 30-Yr Treasury Yield Rises to the Highest Since 2007

Stock futures are higher as global bonds steady in the wake of a favorable dip in EU inflation ahead of NVDA earnings due out after the close today.

Economically, EU inflation actually cooled in April as the Eurozone Core HICP figure (a CPI equivalent) fell from 2.3% to 2.2% Y/Y vs. (E) 2.2% last month.

There are no noteworthy economic releases today however the Fed’s Barr is scheduled to speak ahead of the bell (9:15 a.m. ET) and the latest FOMC meeting Minutes will be published this afternoon (2:00 p.m. ET).

Additionally, the Treasury will hold a 4-Month Bill auction at 11:30 a.m. ET and a 20-Yr Bond auction at 1:00 p.m. ET that could rekindle volatility in the fixed income space.

Finally, earnings season continues with quarterly reports due to be released by ADI ($2.89), TGT ($1.37), LOW ($2.96), TJX ($1.01), INTU ($11.13), ELF ($0.01) and by far the most important release of the day (and potentially entire earnings season) NVDA ($1.70).

With NVDA earnings looming large after the close, today’s equity market price action is likely to be driven by bond yields with both the Treasury auctions and FOMC minutes in focus. If yields remain lower, there is a good chance stocks enjoy a relief rally into the NVDA earnings release this afternoon.