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Market Multiple Levels: S&P 500 Chart

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What’s in Today’s Report:

  • Market Multiple Levels: S&P 500 Chart
  • NFIB Small Business Optimism Index Takeaways

Stock futures are little changed this morning as investors continue to digest the recent sprint to new record highs following a mostly quiet night of news.

Eurozone Industrial Production rose 2.5% vs. (E) 2.3% in November but EU stocks are trading slightly lower due to ongoing, tight economic lockdowns across the continent.

Looking into today’s session there is one economic report to watch this morning: CPI (E: 0.4%), and a “hot” number could trigger a renewed rise in bond yields that would ultimately weigh on stocks.

Meanwhile, there is also a 30-Yr Bond Auction at 1:00 p.m. ET and if demand is strong, as it was for the 10-Yr auction yesterday, that may help stocks stabilize, especially if the inflation numbers come in above expectations.

Finally, it is another busy for the Fed as several officials are scheduled to speak including: Bullard (9:30 a.m. ET), Brainard (1:00 p.m. ET), Harker (2:00 p.m. ET), and Clarida (3:00 p.m. ET), but as long as they all stick to the mostly dovish narrative of recent, they should not have a significant impact on equity markets today.

The Presidential Election and Markets

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What’s in Today’s Report:

  • Why Doesn’t the Market Care About the Election Yet?
  • NFIB Small Business Optimism Index Takeaways

Stock futures are higher this morning following positive vaccine news from MRNA late yesterday which is offsetting a continued rise in tensions between the U.S. and China.

All 45 patients involved in MRNA’s latest coronavirus vaccine trial reportedly showed a “robust immune response” to the treatment, pushing the trial into the next phase.

Looking into today’s session, there are a lot of potential market catalysts including several economic reports due early in the day: Empire State Manufacturing Survey (E: 8.9), Import and Export Prices (E: 1.1%, 0.8%), and Industrial Production (E: 4.3%).

There is also one Fed official scheduled to speak: Harker (12:00 p.m. ET) but he is not likely to move markets as focus shifts to earnings. Notable companies releasing their Q2 earnings reports include: UNH ($5.08), GS ($4.27), PNC ($1.14), and BK ($0.94).

Despite all of the moving pieces this morning, markets are focused on the positive MRNA vaccine developments and continued optimism for a viable vaccine/treatment should support risk-on money flows today barring any major surprises.

Economic Breaker Panel: June Update

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What’s in Today’s Report:

  • Economic Breaker Panel: June Update
  • NFIB Small Business Optimism Index Takeaways

S&P futures wavered between gains and losses overnight amid mixed economic news and an uptick in new COVID-19 cases across parts of the U.S. while focus turns to the Fed.

In their latest update, the Paris-based OECD now expects a 6.0%-7.6% contraction in the global economy in 2020, the worst in 100 years.

Economically, both China’s CPI and PPI readings for May were well below estimates with the latter pointing to a concerning increase in deflationary pressures (-3.7% YoY) as a result of the coronavirus pandemic.

Looking into today’s session, there is one economic report due out ahead of the bell: CPI (E: 0.0%) before investors will look ahead to the FOMC Meeting Announcement (2:00 p.m. ET) and Fed Chair Press Conference (2:30 p.m. ET) in the afternoon.

Specifically, the Fed’s new economic projections and any clarity on QE plans will be most closely watched items this afternoon and have the most potential to move markets into the close.