What’s in Today’s Report:
- Pullback or Something More?
- EIA Analysis and Oil Market Update
Futures are slightly higher on better than expected CSCO earnings amidst an otherwise quiet night.
Earnings this week have been solid and that continued with CSCO results overnight (stock up about 3% pre-market) and that’s driving the bounce in futures.
Earlier this week HD, TGT and TJX all posted solid results and the earnings reinforced the $240 2024 S&P 500 earnings expectation (which helps with market valuation).
Today focus will be on economic data and the key reports are: Jobless Claims (E: 240K), Philly Fed Manufacturing Index (E: -10) and Leading Indicators (E: -0.4%).
Markets need Goldilocks economic data to stop rising Treasury yields while at the same time further downplaying hard landing worries. If the data is “Too Hot” yields will rise and stocks will likely fall, while conversely, a sudden drop in activity will increase worries about a hard landing (and likely pressure stocks). Numbers close to expectations are what investors need to help support stocks.