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Market Multiple Table: February Update

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Market Multiple Table: February Update: Start a free trial of The Sevens Report.

What’s in Today’s Report:

  • Market Multiple Table – February Update (Shareable PDF)
  • ISM Services PMI Takeaways: Prices Subindex Surges

U.S. equity futures are little changed as Treasuries stabilize following a 30 basis point spike in yields over the last two sessions while global markets were mixed overnight.

Chinese stocks rallied 4% overnight amid government intervention to stem recent losses while European shares edged up on better than feared Retail Sales and a very strong German Manufacturing Orders Report (+ 8.9%).

Looking into today’s session, there are no economic reports but there is a busy afternoon of Fed speak with Mester (12:00 p.m. ET), Kashkari (1:00 p.m. ET), Collins (2:00 p.m. ET), and Harker (7:00 p.m. ET) all scheduled to deliver commentary. The market will want to hear a less hawkish tone than Powell’s from last week and the weekend in order for Treasuries to continue to stabilize and stocks resume the rally.

Additionally, there is a 3-Yr Treasury Note auction at 1:00 p.m. ET and the outcome could move bond markets and influence equity market trading this afternoon.

Finally, earnings season is beginning to slowdown but there are a few notable quarterly releases today including: SNAP ($0.06), F ($0.13), and CMG ($9.73).

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Pullback or Something More?

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What’s in Today’s Report:

  • Pullback or Something More?
  • EIA Analysis and Oil Market Update

Futures are slightly higher on better than expected CSCO earnings amidst an otherwise quiet night.

Earnings this week have been solid and that continued with CSCO results overnight (stock up about 3% pre-market) and that’s driving the bounce in futures.

Earlier this week HD, TGT and TJX all posted solid results and the earnings reinforced the $240 2024 S&P 500 earnings expectation (which helps with market valuation).

Today focus will be on economic data and the key reports are:  Jobless Claims (E: 240K), Philly Fed Manufacturing Index  (E: -10) and Leading Indicators (E: -0.4%).

Markets need Goldilocks economic data to stop rising Treasury yields while at the same time further downplaying hard landing worries.  If the data is “Too Hot” yields will rise and stocks will likely fall, while conversely, a sudden drop in activity will increase worries about a hard landing (and likely pressure stocks).  Numbers close to expectations are what investors need to help support stocks.