Fundamentals Remain Bearish
What’s in Today’s Report:
- Bottom Line: Fundamentals Remain Bearish
- Economic Data Takeaways: Durable Goods and Consumer Confidence
- Chart: Nasdaq Holds June Lows So Far
Global equities continued to bleed lower overnight as yields and the dollar rose to new highs however those moves are reversing on the breaking news out of the BOE.
The Bank of England announced a bond-buying program aimed at stabilizing volatile market conditions and while it is not a long-term fix, markets have responded positively so far and the efforts may be enough to trigger a near-term relief rally today as the market remains oversold.
Today, there are two lesser followed economic reports due to be released: International Trade in Goods (E: -$88.7B) and Pending Home Sales (E: -0.8%) but neither should materially move markets.
The Fed speaker circuit remains busy with: Bostic (8:35 a.m. ET), Bullard (10:10 a.m. ET), Powell (10:15 a.m. ET), Bowman (11:00 a.m. ET), and Evans (2:00 p.m. ET) all speaking today. If there is any sign of a less-hawkish pivot, especially by Powell, that could bolster the early attempt at a relief rebound in stocks and other risk assets.
Finally, there is a 7-Yr Treasury Note auction at 1:00 p.m. ET and if the results come in solid, which would be a contrast to yesterday’s 5-Yr auction, a pullback in yields could also be well received by equity markets and trigger a bounce.