May MMT Chart
What’s in Today’s Report:
- May MMT Chart
- CPI Takeaways
Futures are flat after a mostly quiet night of news that included benign inflation data overseas while traders digest the fastest recovery from YTD losses since the 1980s.
Economically, April inflation data was mixed overnight as Japanese PPI fell to 4.0% vs. (E) 3.8% y/y while German CPI met estimates at 2.1% y/y last month.
There are no notable economic reports today but two Fed officials are scheduled to speak: Jefferson (9:10 a.m. ET) and Daly (5:40 p.m. ET). Neither are likely to move markets, however Fed policy expectations have shifted more hawkish in recent weeks so any dovish leaning comments could support a continued move higher in equities today.
On that same vein, there is a 4-Month Treasury Bill auction at 11:30 a.m. ET. Those Bills will mature around the time of the September Fed meeting, so strong demand would be dovish for markets while weak demand could spark hawkish money flows and result in some profit taking in risk assets.
Finally, there are a few more late season earnings releases due out today including SONY ($0.12) and CSCO ($0.75) but given optimism for new AI-chip deals overseas, neither report should be able to derail this week’s rally.