What to Buy If You Want to “Dip a Toe”
What’s in Today’s Report:
- What to Buy If You Want to “Dip a Toe”
- Flash Composite PMI Data Takeaways
Futures are higher with global shares while oil and bond yields are both sharply lower as investors react to a potential 1-month ceasefire deal between the U.S. and Iran.
Economically, Germany’s Ifo Survey was mixed with Current Conditions flat at 86.7 but Business Expectations fell to 86.0 vs. (E) 88.0 while U.K. CPI was in-line at 3.0% Y/Y.
Today, focus will remain primarily on the U.S.-Iran ceasefire headlines and any further, concrete details surrounding the prospects for a deal will continue to support risk-on money flows.
Additionally, there is one second tiered economic report (delayed due to the government shutdown) due to be released with Import Prices (E: 0.6% m/m) poised to hit ahead of the bell.
There is also a 5-Yr Treasury Note auction at 1:00 p.m. ET, and if demand for the Notes is as weak as it was during yesterday’s 2-Year auction, yields could begin to bleed lower and act as a renewed headwind on equity markets.
Finally, there is one Fed speaker after the bell: Miran (4:10 p.m. ET) and a handful of late season earnings reports that are unlikely to materially impact markets given the geopolitical development of the last 24 hours. Companies reporting include: CHWY ($0.09), PAYX ($1.68), and CTAS ($1.23).