What’s in Today’s Report:
- Yesterday’s Most Important Testimony (It Wasn’t Cohen)
- Is All the Good News Priced in Already? (Two Important Observations)
- Why Did Treasury Yields Surge Yesterday?
Futures are modestly lower again this morning following more disappointing Chinese economic data and the collapse of the U.S./North Korea summit.
Global growth remains a concern as the Chinese Feb. manufacturing PMI missed estimates, dropping to 49.2 vs. (E) 49.4. Japanese IP and Retail Sales also missed estimates.
The U.S./North Korea summit ended early and without a substantive agreement, and while that’s not a direct impact on stocks, it’s adding to the generally negative mood this morning.
Today there will be focus on the Preliminary Q4 GDP (E: 2.2%) but keep in mind that’s now a very old number. Tomorrow’s global manufacturing PMIs are a much more important number for the markets going forward. Today we also get Jobless Claims (E: 225k) which have been trending higher lately, and markets will want to see that trend reversed.