May MMT: Fundamental Improvement But What’s Next?

What’s in Today’s Report:

• May Market Multiple Table: Fundamental Improvement But What’s Next?

Futures are lower amid “risk-off/war-on” money flows (oil and yields higher) with no reported progress towards a U.S.-Iran ceasefire ahead of key U.S. inflation data today.

Economically, German CPI met estimates at 2.9% Y/Y while the U.S. NFIB Small Business Optimism Index was little changed at 95.9 vs. (E) 96.1 in April, however the data is not materially moving markets with geopolitics remaining in focus.

Looking ahead to today’s session, the U.S. CPI (E: 0.6% m/m, 3.8% y/y) and Core CPI (E: 0.3% m/m, 2.7% y/y) release will be one of the more important domestic data points released this week, and if the number comes in hot, a sharp rise in yields could weigh heavily on stocks.

Additionally, there is one Fed speaker to watch: Goolsbee (1:00 p.m. ET) and a 10-Yr Treasury Note auction at 1:00 p.m. ET, both of which have the potential to impact bond markets and influence equity price action today.

Finally, a few earnings reports to watch today include SE ($0.70), JD ($0.43), and QBTS (-$0.10). As has been the case this earnings season, the better the quarterly results, the better in this market environment.