Why YTD Sector Performance Implies Inflation Risks
What’s in Today’s Report:
- Why YTD Sector Performance Implies Inflation Risks
Futures are little changed on mixed tech news and as the Bank of Japan decision met expectations.
Tech earnings/news was mixed as Intel missed (INTC down 13% pre-market) but a positive Bloomberg article on Nvidia (NVDA) chip sales to China is offsetting the INTC results.
The Bank of Japan held rates steady but signaled more hikes are coming, as expected (and that kept JGB’s calm).
Focus today will be on economic data and specifically the Flash Manufacturing PMI (E: 52.0) and Flash Services PMI (E: 52.8), which are the first national data points for January. Stability in the data will be welcomed by markets as another reminder of the Goldilocks economy (which is stock positive).
We also get Consumer Sentiment (E: 54.0) and some earnings reports (SLB ($0.74), ERIC ($0.23), BAH ($1.26)) but they shouldn’t move markets.