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Putting the Tech Sector Dominance in Real Numbers

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What’s in Today’s Report:

  • Putting the Tech Sector Dominance in Real Numbers
  • ISM Manufacturing PMI Takeaways

Markets are risk-off this morning with stock futures down ~1% while bonds are bid thanks to the combination of cautious comments from banking executives at a global conference overnight and disappointing PLTR earnings (shares down 7%+ in premarket trade).

Looking into today’s session there are a handful of economic releases to watch today including: International Trade in Goods (E: $-64.1B), Factory Orders (E: 0.2%), and JOLTS (E: 7.3 million) assuming none are delayed due to the government shutdown.

There is one Fed speaker on the calendar as well as Bowman began speaking at 6:35 a.m. ET at the Santander International Banking Conference in Spain.

Finally, we will get earnings and guidance figures from more important multi-national companies today, including UBER ($0.67), SPOT ($1.87), AMD ($0.97), SMCI ($0.19), AXON ($0.07), AMGN ($5.00), and PFE ($0.66), and based on the risk-off money flows related to the soft PLTR release that is weighing on equities today, investors will want to see better numbers, especially out of tech-focused firms.

 

Technical Market Update

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What’s in Today’s Report:

  • Technical Market Update
  • Two Events to Decide the Year
  • Weekly Market Preview
  • Weekly Economic Cheat Sheet (All About Inflation This Week)

Futures are surging and global markets are up 1% thanks to apparent progress on the EU/Italy budget standoff.

Italian deputy PM Salvini said over the weekend that Italy wasn’t “stuck” on the 2.4% budget deficit, adding to the momentum that a compromise might be achieved.

Economic reports overnight were again disappointing.  Japanese flash manufacturing PMI missed estimates (51.8 vs. (E) 53.0), as did German IFO business expectation (98.7 vs. (E) 99.2.

There are no notable economic reports or Fed speakers today, so focus will remain on the tech sector.  Tech traded with some decent relative strength Friday, and if it can build on that today, then we could see a good bounce back rally.  Conversely, if tech fails to rally, then so too will the boarder markets.