Why markets are dropping again (And Why We Don’t Think It’s a Bearish Gamechanger), what needs to happen in the short term for markets to stabilize, jobs report preview, futures are sharply lower as the arrest of the Huawei CFO in Canada has added to uncertainty on U.S./China trade, while oil is down sharply due to OPEC disappointment and more.
US stock futures are down roughly 10 points this morning as yesterday’s big rally and notable post-market gains thanks to strong NFLX earnings are digested and investors look ahead to the Fed Minutes today.
Sell Off Takeaways: Why We Don’t View It as a Bearish Gamechanger (Yet). Futures are sharply lower as global markets dropped following the Wednesday rout in U.S. stocks, today the key event is the Core CPI report (E : 0.2% m/m, 2.3% y/y) out this morning. This release is even more important than before because if it prints “hot” (core CPI above .4% m/m) that will add to the concern that the Fed is going to get more hawkish and that will add another source of pressure on stocks, which we obviously don’t need right now. Conversely, if this number is inline of a little light, that could provide a catalyst for markets to try and stabilize and more.