Oil Update: EIA Data and OPEC+ Policy Outlook

What’s in Today’s Report:

  • June PMI Composite Flash Data Takeaways
  • Oil Update: EIA Data OPEC+ Policy Outlook

S&P futures are trading solidly higher this morning amid infrastructure deal optimism ahead of key data today.

Risk on money flows are being driven by reports that a roughly $1T-$1.2T infrastructure deal, that will not require changes to individual or corporate tax rates, is “imminent.”

This morning is lining up to be a busy one from a catalysts standpoint as there are several important economic reports to watch including: Durable Goods Orders (E: 2.0%), Final Q1 GDP (6.4%), International Trade in Goods (E: -$87.9B), and Jobless Claims (E: 380K).

Several Fed officials are also scheduled to speak: Williams (11:00 a.m. ET), Kaplan (1:00 p.m. ET), and Bullard (1:00 p.m. ET) while there is a 7-Yr Treasury Note auction at 1:00 p.m. ET.

Bottom line, investors will want to see economic data remain strong today but importantly not run “too hot” as that could spark renewed hawkish concerns and weigh on broader equity markets as we saw last week. Additionally, Fed chatter can continue to lean hawkish but not so much that we see policy expectations turn more hawkish than the post-Fed reaction. Finally, today’s 7-Yr Treasury Note auction is the wildcard to watch as if it is a repeat of the February disaster, bond market volatility could spill over into equity markets.