Two Sector Rotation Strategies With Proven Outperformance
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What’s in Today’s Report:
- Two Sector Rotation Strategies With Proven Outperformance
- Dueling Political Influences on Oil Prices
Futures are modestly higher on more solid tech earnings and as markets are in a “show me” mode on tariff threats.
Apple (AAPL) beat earnings overnight and the stock is up 3% pre-market and that’s helping push futures higher.
On tariffs, markets remain skeptical tariffs will be implemented against Canada and Mexico tomorrow and if they are, they’ll be largely ineffectual.
Today focus will be squarely on the Core PCE Price Index (E: 0.2% m/m, 2.6% y/y). This is the Fed’s favorite measure of inflation and markets will want to see an in-line to weaker number to keep rate cut expectations intact. If this number is above expectations, however, look for yields to jump and for that to likely hit stocks.
In addition to the core PCE Price Index we do have one Fed speaker today (Bowman at 8:30 a.m. ET) and some more notable earnings (XOM ($1.58), ABBV ($2.13), CL ($0.89)) but they’re unlikely to move markets.
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