Unhealthy Price Action and Revisiting Credit Spreads
Unhealthy Price Action and Revisiting Credit Spreads: Start a free trial of The Sevens Report.
What’s in Today’s Report:
- Tech Update – An Unhealthy Start to a Critical Two Weeks
- What Credit Spreads Are Saying About the Economy and Markets
- JOLTS Data Takeaways – Available Jobs Fall Below Previous Cycle Peak (2019)
Equities are mixed in pre-market trade as earnings dominate early money flows.
Tech-heavy Nasdaq futures are outperforming and holding overnight gains thanks to solid earnings from GOOG helping to offset disappointing guidance from AMD while CAT earnings are weighing on Dow futures. S&P 500 futures are little changed.
Economically, the Eurozone’s Q3 GDP Flash firmed to +0.4% vs. (E) +0.2% largely thanks to growth in Germany which is easing concerns about the health of the EU economy and that is ultimately resulting in a favorable pullback in the recently strong dollar.
Today, focus will be on economic data early with the ADP Employment Report (E: 115K), and Q3 GDP Report (E: 3.0%) both due out before the bell while Pending Home Sales (E: 1.0%) will be released shortly after the open.
There are no Fed speakers today as they remain in their “blackout period” ahead of next week’s FOMC meeting which will leave traders watching for more earnings. Notable companies reporting today include: LLY ($1.52), CAT ($5.33), and HUM ($3.48) before the open, and MSFT ($3.08), META ($5.17), and ALL ($2.20) after the close.
Join thousands of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.
