Reading Market Volatility: If, Then.
What’s in Today’s Report:
- Reading Market Volatility: If, Then…
Futures are little changed despite solid earnings overnight and more signs of trade war de-escalation.
GOOGL posted stronger than expected results and tech earnings broadly last night were solid, boosting the sector.
On trade, China exempted several categories of U.S. imports from 125% tariffs in a further small de-escalation of trade tensions.
Trade headlines will continue to dominate intra-day trading today but there’s also a notable economic report this morning via University of Michigan Consumer Sentiment (E: 50.8). The key part of this report will be the inflation expectations and estimates are as follows: One Year Inflation Expectations: 6.7%, Five-Year Inflation Expectations 4.4%. If the actual data is hotter than those estimates, it will put upward pressure on yields and could weigh on stocks.
On earnings, results so far have been better than expected and that has helped this rally. Notable results today include: ABBV ($2.40), CHTR ($8.53) and PSX ($-0.77).
