Two Reasons Tech Dropped on Monday
What’s in Today’s Report:
- Why Did Tech Drop on Monday? – Two Reasons
- Why Treasury Bond Repurchases Matter to You
Futures are higher with tech/semis leading amid fresh geopolitical optimism surrounding a NYT report that the U.S. government plans to re-staff Middle East embassies, a sign that no further military escalations with Iran are anticipated.
Economically, German data beat estimates as Q2 GDP rose 1.0% vs. (E) 0.9% and the August Ifo Survey’s headline Business Climate figure rose to 88.8 vs. (E) 87.1 which is helping fuel risk-on money flows in early trade.
Looking ahead to today’s session, there are multiple economic reports to watch including the Case-Shiller Home Price Index (E: 1.8%), Consumer Confidence (E: 90.1), and New Home Sales (E: 620K). Additionally, there is one Fed official scheduled to speak today: Barkin (8:00 a.m. & 4 p.m. ET).
Finally, while earnings season is winding down, there are still a handful of notable companies due to report (NVDA’s results tomorrow will be the big release for the week). Today, DKS ($3.78), BMO ($2.71), BNS ($1.53), GFI ($1.10), INTU ($2.12), and ZM ($1.01) will all report Q2 earnings.
For this morning’s pre-market advance to hold, investors will be looking for the decline in oil and drop in yields to hold through the open as economic data to come in “Goldilocks” and Fed speak to track “less-hawkish.” If oil and/or yields rebound, equities will face a renewed, familiar set of market headwinds.
