Market Multiple Levels: S&P 500 Chart
What’s in Today’s Report:
- Market Multiple Levels: S&P 500 Chart
- NFIB Small Business Optimism Index: Labor Market Issues Remain a Headwind
Futures are slightly lower while global shares extended recent gains overnight ahead of key inflation data and more progress on U.S. infrastructure and spending plans.
After passing the bipartisan $1.2T infrastructure bill yesterday, the Senate narrowly passed a $3.5T spending plan aimed at fighting climate change and poverty overnight however neither of the bills is likely to be taken up in the House until after the summer recess in September.
Economically, German CPI met estimates of 0.9% in July which did not have a material impact on markets.
Today, the focus will be on economic data early with the July CPI report due out ahead of the bell (E: 0.5% m/m, 5.5%y/y).
Then after the open, there are a couple of Fed speakers to watch: Bostic (10:30 a.m. ET) and George (12:00 p.m. ET). The narrative has been shifting slightly more hawkish recently so look for a continuation of that trend in the speeches which may cause a further rise in Treasury yields today.
Finally, in the early afternoon, there is a 10-Yr Treasury Note auction at 1:00 p.m. ET. If the outcome is weak (tails) expect a continued move higher in longer maturity yields that will have some degree of hawkish impact across asset classes while a strong auction would likely see yields pull back from their recent gains which would likely offer a boost to growth/tech stocks.
