What’s in Today’s Report:
- Technical Update: What Would Make This Bounce Sustainable?
- EIA Analysis and Oil Update
Futures are slightly lower following a busy night of mixed earnings reports and ahead of today’s ECB decision.
Politically, Italian PM Draghi formally resigned and there will be elections in Italy this fall, which is adding to general macro-economic uncertainty.
Earnings overnight were mixed although TSLA posted solid results and the stock rallied 3% after hours.
Today will be a busy day for economic data and earnings and the key event is the ECB Decision. A 25 bps hike is expected although a 50 bps hike is very possible. From a stock standpoint, markets will be hoping for a 50 bps hike because that will boost the euro and weigh on the dollar (the dollar being this high is a problem for U.S. corporate earnings). Outside of the ECB we also get Jobless Claims (E: 240K) and Philadelphia Fed (E: -3.3).
On the earnings front, results continue to roll in and so far this season they are decidedly mixed (not good, but not materially worse than feared, either). Some results we’re watching today include: T ($0.59), FCX ($0.80), UNP ($2.38), COF ($5.09).