Revisiting the Yield Curve
Revisiting the Yield Curve: Start a free trial of The Sevens Report.
What’s in Today’s Report:
- Why Stocks Dropped
- Another Month, Another VIX Squeeze
- Revisiting the Yield Curve Reversion
- ISM Manufacturing Index Takeaways
Stock futures are lower again this morning as global equity markets sold off overnight following the tech-led declines in the U.S. yesterday amid mixed economic data overseas.
Economically, China’s Composite PMI was unchanged at 51.2 in August but the Services Index fell to 51.6 vs. (E) 52.1 while the EU Composite PMI rose to 51.0 vs. (E) 51.2.
Looking into today’s session, there are several economic reports due to be released including: JOLTS (E: 8.1 million), Factory Orders (E: 4.6%), and Monthly Motor Vehicle Sales (E: 15.4 million).
There are no Fed officials scheduled to speak today however a few late season earnings reports are due out including: DLTR (E: $1.03) and HPE (E: $0.47) which could have an impact on markets today.
Bottom line, markets began September with heavy selling pressure and broad risk-off money flows yesterday, and for stocks to stabilize here investors will need to see support at 5,500 in the S&P 500 hold today, otherwise more downside is likely ahead of the jobs report Friday.
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