Is This An “Earnings vs. Everything Else” Market?

What’s in Today’s Report:

• Is This An “Earnings vs. Everything Else” Market?
• Weekly Market Preview: A Sneakily Important Week for Earnings, Economic Growth and Iran
• Weekly Economic Cheat Sheet: Does May Economic Activity Stay Resilient?

Futures are extending Friday’s declines and are moderately lower as there was no progress on a U.S./Iran ceasefire over the weekend.

The UAE and Saudi Arabia reported limited drone attacks on energy infrastructure and while markets still expect a ceasefire, the chances of a resumption of fighting are rising.

Economically, Chinese data was soft, as Industrial Production (4.1% vs. (E) 6.0%), Fixed Asset Investment (-1.6% vs. (E) 1.7%) and Retail Sales (0.2% vs. (E) 2.0%) all badly missed estimates.

Today focus will remain on geopolitics as President Trump is meeting with his national security team and while not the majority expectation, the chances of a resumption of direct U.S. attacks on Iran are rising (and if that happens, markets will drop). Away from geopolitics, the only notable economic report is the Housing Market Index (E: 34) which shouldn’t move markets.