Posts

Market Multiple Table: November Update

/in , /by

What’s in Today’s Report:

  • Market Multiple Table: November Update

Stock futures pulled back overnight following the release of the Fed’s Financial Stability Report, which noted stretched asset prices, but markets have since stabilized as new domestic inflation data comes into focus.

Economically, the German ZEW Survey was mixed (Current Conditions missed, Economic Sentiment beat) while the NFIB report was mildly underwhelming however neither report materially moved markets in pre-market trade.

Looking into today’s session, earnings season continues with a lot of smaller cap companies reporting however focus this morning will be on economic data with the October PPI report due before the bell (E: 0.6% M/M, 8.6% Y/Y).

Then the Fed speaker circuit also remains active today with Bullard (7:50 a.m. ET), Powell (9:00 a.m. ET), Kashkari (1:30 p.m. ET) all speaking over the course of the session and the market will be looking for further confirmation that rate hikes will not commence before late 2022 otherwise we could see a hawkish reaction from markets.

Finally, there is a 10-Yr Treasury Note Auction at 1:00 p.m. ET that could move bonds and subsequently trigger a reaction from stocks.

Macro Clarity This Week?

/in , /by

What’s in Today’s Report:

  • Can We Get Macro Clarity This Week?
  • Weekly Market Preview:  All About the Fed
  • Weekly Economic Cheat Sheet:  A Very Busy Week (Final Oct. PMIs, Fed Decision, Jobs Report)

Futures are modestly higher on tariff reduction and hopes Democrats will pass the spending bill early this week.

The US and EU eased steel tariffs this weekend and that is leading to hope that U.S./China tariffs could also be cut.

Democrats have coalesced around a $1.75 trillion spending bill with few tax increases that could be passed this week.

Economic data was mixed as the Oct. Chinese Manufacturing PMI missed estimates (49.2 vs. (E) 49.7) while the UK reading slightly beat (57.8 vs. (E) 57.7).

Today focus will be on the ISM Manufacturing PMI (E: 60.3) and markets will want to see stability in the data to show the recovery remains on solid ground.  Additionally, any further signals from Washington that the spending bill will be signed this week should be at least a mild tailwind on markets today.