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How the “Degenerate Economy” Can Help Us Navigate This Market

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What’s in Today’s Report:

  • How the Degenerate Economy Can Help Us Navigate This Market
  • ISM Manufacturing PMI Takeaways

U.S. stock futures are solidly higher this morning, led by tech shares with GOOGL up 6%+ after a favorable court ruling saw the company avoid severe antitrust penalties while international stocks were mixed as bonds steadied in the wake of an early week spike in yields.

Economically, the final Eurozone Composite PMI fell to 51.0 vs. (E) 51.1 in August due to a weak Services index revision but the data is not materially moving markets focused on renewed tech sector strength this morning.

Today, focus will be on economic data early as jobs week kicks off the July JOLTS report (E: 7.375 million) while Factory Orders data from July will also be released mid-morning (E: -1.4%).

There are two Fed speakers today: Musalem (9:00 a.m. ET) and Kashkari (1:30 p.m. ET). As far as stocks are concerned the more dovish their tone, the better as investors are pricing in a September rate cut with a high degree of certainty.

Finally, late seasons earnings continue to be released with quarterly reports from DLTR ($0.38), HPE ($0.36), M ($0.19), CPB ($0.57), CRM ($2.12), AEO ($0.20), and AI (-$0.81) all due out today.

 

Market Multiple Table: May Update

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What’s in Today’s Report:

  • Market Multiple Table: May Update
  • ISM Manufacturing PMI Takeaways
  • Is the Bank of England About to Become the Second Large Central Bank to Taper QE?

Stock futures are modestly lower this morning after a mostly quiet night of news as investors continue to digest the equity market’s latest run to record highs and technology shares lag.

Economically, the U.K.’s Manufacturing PMI was 60.9 vs. (E) 60.7 in April, helping the FTSE outperform this morning.

Today, there are a few economic reports to watch early in the day including: Motor Vehicle Sales (E: 17.5M), International Trade in Goods (E: -$74.0B), and Factory Orders (E: 1.3%) however none of them should materially move markets.

There are no Fed officials scheduled to speak today and no Treasury auctions.

Earnings season is still underway with a few notable companies reporting Q1 results today including: CVS ($1.72), PFE ($0.79), and LYFT (-$0.53).

Is the Silver Rally Sustainable?

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What’s in Today’s Report:

  • Is the Silver Rally Sustainable?
  • ISM Manufacturing PMI takeaways

Stock futures are solidly higher this morning as the rebound from last week’s declines continues amid renewed stimulus optimism and positioning into key earnings.

Moderate Senate Republicans presented President Biden with a $600B+ stimulus package yesterday raising hopes for a bipartisan deal sooner than previously expected.

Today, there is only one economic report due out this morning: Motor Vehicle Sales (16.2M), and two Fed speakers are scheduled for the early afternoon: Williams (2:00 p.m. ET), Mester (2:00 p.m. ET).

That will leave investor focus on any new stimulus developments out of Washington and another busy earnings release schedule today

Notable companies releasing their Q4 results today include: UPS ($2.10), BABA ($3.22), PFE ($0.45), and XOM ($0.01) before the open and AMZN ($7.05), GOOGL ($15.89), and CMG ($3.71) after the close.