The Real Problem for this Market (Not Growth)
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What’s in Today’s Report:
- The Real Problem for this Market (Not Growth)
- Weekly Market Preview: Does Weak Inflation Data Make a 50 bps Cut More Likely?
- Weekly Economic Cheat Sheet: CPI Wednesday is the key report.
Futures are seeing a strong bounce following a generally quiet weekend of news.
There was no specific positive headline that’s rallying futures and instead we’re seeing mostly technical dip buying.
Economically, Japanese Q2 GDP missed estimates (2.9% vs. (E ) 3.1% and that’s pushing back on BOJ rate hike expectations, which is a mild positive (the yen is down 1%).
This week focus turns back to inflation and that includes today’s NY Fed Inflation Expectations (E: 3.0%). If they fall more than expected, it’ll further boost expectations for a 50-bps cut (and help support stocks). The other notable economic report is Consumer Credit (E: $12.5B) and there is another important tech earnings report after the close (ORCL (E: $1.33)). Solid guidance from ORCL would be a welcomed positive for investors right now.
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