Evolution of the AI Trade: ROCs, SOCs and SaaS
What’s in Today’s Report:
- Evolution of the AI Trade: ROCs, SOCs and SaaS
Futures are flat and bonds are steady despite a continued rise in oil prices amid ongoing geopolitical tensions between the U.S. and Iran with focus on control of Hormuz.
Economically, the NFIB Small Business Optimism Survey firmed to 97.4 vs. (E) 95.6 in June.
Today is a busy and important day of data, Fed speak and earnings.
The key economic report today is CPI and expectations are as follows: -0.1% m/m, 3.8% y/y, Core CPI (E: 0.2% m/m, 2.9% y/y). Put simply, an in-line to better than expected number should pressure yields and help stocks while a “hot” number will push the 10-year yield towards a new YTD high (and pressure stocks).
On the Fed front, the key event is Chair Warsh (10:00 a.m. ET) but there are several other speakers including Barr (12:40 p.m. ET), Goolsbee (1:00 p.m. ET), Cook (1:30 p.m. ET) and Bowman (2:55 p.m. ET). The less concerned they are about inflation, the better (especially Warsh).
Finally, on earnings, the banks kick off the Q2 reporting season and key reports today include: JPM ($5.52), GS ($14.47), BAC ($1.13), C ($2.72), WFC ($1.73).