What’s in Today’s Report:
- Selloff Update (Some Positive News Yesterday)
- If This The Fed’s Fault?
- Two Economic Canaries in the Coal Mine
Futures are rebounding as global markets bounce following solid economic data and confirmation of the Trump/Xi meeting at the G-20.
Economic data was solid overnight as Chinese exports beat estimates, rising 14.5% vs. (E) 8.2%, while Eurozone Industrial Production rose 1% vs. (E) 0.5%. Both numbers are helping to improve sentiment.
Today we get bank earnings and JPM already released results and beat estimates, while we wait for WFC (E: $1.17) at 8:00 a.m. Economically we get Consumer Sentiment (E: 99.5) and there are two Fed speakers, Evans (9:30 a.m. ET) and Bostic (12:30 p.m. ET) but none of that should move markets.
Instead, we can expect markets to continued to digest the recent pullback. The tech sector showed some hints of stabilization yesterday but it’ll need to rally if we’re going to get a material bounce in stocks today. Bigger picture, strong earnings from industrial and multi-nationals (which won’t be possible till next week at the earliest) remains the “fix” to this market pullback.