Sentiment Update
Sentiment Update: Start a free trial of The Sevens Report.
What’s in Today’s Report:
- Sentiment Update
- Empire State Manufacturing Index Falls to Pandemic Lows
U.S. futures are tracking global shares lower as the ECB’s Lagarde became the latest to push back on overly dovish policy expectations. While Chinese economic data showed consumer weakness (but industrial strength) and inflation reaccelerated in Europe. This is adding to the recent trend of less-dovish/more-hawkish money flows.
Toay is lining up to be a busy session as there are a slew of economic reports due this morning. Including: Retail Sales (E: 0.4%), Import & Export Prices (E: -0.6%, -0.6%), Industrial Production (E: -0.1%), and the Housing Market Index (E: 38).
There are also several Fed officials scheduled to speak over the course of the session: Barr, Bowman, and Williams.
Earnings will also continue to come in today with several more notable financial companies reporting: SCHW ($0.65), CFG ($0.60), and DFS ($2.50).
Bottom line, trading has taken a more cautious tone this week with heavier price action in stocks. In order for that to ease and risk appetites return to the market today, we will need to see data that is consistent with a still healthy and resilient consumer but not to the point where the Fed would be inclined to delay rate cuts or cut less in 2024. Investors will look for less-hawkish Fed commentary and stable earnings as well. If those developments do not occur the risk of an acceleration lower in stocks this week will rise meaningfully.
Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.
