June MMT Chart: Three Technical Caution Signals
What’s in Today’s Report:
- June MMT Levels: S&P 500 Chart – Three Caution Signals
Futures are lower as traders digest the latest geopolitical escalations with the U.S. launching “retaliatory strikes” against Iran overnight after a U.S. military helicopter was downed near the Strait of Hormuz yesterday while focus shifts to critical domestic inflation data.
Economically, Chinese CPI held steady at 1.2% Y/Y vs. (E) 1.3% in May, helping somewhat ease global inflation worries.
Today, traders will be keenly focused on U.S. inflation data with CPI (E: 0.5% m/m, 4.2% y/y) and Core CPI (E: 0.3% m/m, 2.9% y/y) data due out ahead of the open. The latest Treasury Statement (E: $-269.5B) will also be released in the afternoon but is unlikely to move markets.
Beyond the CPI report, there are no Fed officials scheduled to speak today, however, there is a 4-Month Treasury Bill auction at 11:30 a.m. ET and a 10-Yr Treasury Note auction at 1:00 p.m. ET which could offer insight on the bond market’s reaction to this morning’s inflation data, and ultimately impact equities (the stronger the demand, the better for stocks, near-term).
Finally, on the earnings front, quarterly reports are due out from CHWY ($0.24) and ORCL ($1.58), the latter of which could present a fresh catalysts for the shaky AI-trade. A miss could restart heavy selling while strong results could prompt a fresh, squeezy/chase higher in AI, tech, and semiconductor stocks in afterhours trade.
