Is the VIX Signaling Another Volatility Spike is Coming?
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What’s in Today’s Report:
- Is the VIX Signaling Another Volatility Spike is Coming?
Futures are sharply higher thanks to strong tech earnings, more Chinese stimulus and more global rate cuts.
Micron (MU up 15% pre-market) beat earnings and raised guidance and that’s helping futures rally this morning.
An FT article promised even more Chinese stimulus is coming and that is boosted Asian markets and U.S. futures.
Today there is potentially important economic data and the key reports are: Jobless Claims (E: 224.5K), Durable Goods (E: 0.1%) and Final Q2 GDP (E: 3.0%). In-line to better-than-expected readings will help further fuel this rally while weak data, especially in claims and Durable Goods, will increase hard landing fears (and weigh on stocks).
On the Fed front, there are multiple speakers today with most speaking at a Treasury Market Conference (there were so many that it’d take up the whole pre-seven look if we listed them all). The most notable is Powell (9:20 a.m. ET) but don’t expect any of the comments to move markets as the Fed told markets last week what it’s going to do and until the outlook for another 50 bps of easing changes, Fed speak shouldn’t move markets.
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