August MMT Levels: S&P 500 Chart
What’s in Today’s Report:
- August MMT Levels: S&P 500 Chart
- The SPX-VIX Ratio Has Entered Dangerous Territory
Futures are higher, led by tech after SMCI was the latest AI infrastructure name to post blowout quarterly earnings after the close yesterday (shares up 9%+ pre-market), rekindling AI industry optimism ahead of the July CPI release.
Economically, German CPI met estimates at 2.8% y/y in July, unchanged from June, helping shore up hopes that inflation pressures have peaked this summer.
Today, the market’s primary focus will be on the July U.S. CPI data due out ahead of the open: (E) 0.1% m/m, 3.4% y/y, Core CPI (E) 0.2% m/m, 2.5% y/y.
There are no Fed officials scheduled to speak today but the Treasury will hold a 4-Month Bill auction at 11:30 a.m. ET and a 10-Yr Note auction at 1:00 p.m. ET, the latter of which will be more widely watched and has the potential to move markets (the stronger the demand the better, especially in the wake of the CPI release).
Finally, with earnings having a positive impact on the tape this morning quarterly results from NBIS ($-0.67), CSCO ($0.99), and COHR ($1.43) will all be closely monitored as AI optimism has begun to pickup again and buoy the broader equity markets this week. Any material disappointments have the potential to reverse the pre-market bid and send stocks lower as sentiment remains fragile right now.