Three Keys to a Bottom (Updated)
What’s in Today’s Report:
- Three Keys to a Bottom (Updated)
- Weekly Market Preview: Focus Turns to Earnings
- Weekly Economic Cheat Sheet: Flash PMI on Friday is the Big Report to Watch
Futures are moderately higher mostly on momentum from Friday’s rally and following a generally quiet weekend.
Investors continue to hope for a near-term peak in inflation and Friday’s drop in University of Michigan inflation expectations (2.8% vs. (E) 3.0%) and multi-month lows in the Empire Manufacturing price indices fueled that hope and resulted in the rally on Friday and in futures this morning.
Today’s focus will shift to earnings, and they will dominate market action early this week as there are no Fed speakers and no market-moving economic reports till later this week. If earnings are better than feared, they can help extend this rally in the near term while disappointing results will cause more volatility. Some reports we’re watching today include BAC ($ 0.77), GS ($6.99), SCHW ($0.91), IBM ($ 2.29).