Updated Market Outlook: Good, Bad & Ugly
What’s in Today’s Report:
- Updated Scenario Analysis: Good, Bad & Ugly
- EIA Analysis & Oil Update
Futures are enjoying a modest bounce thanks to some mild progress on U.S./China trade and good CSCO earnings.
The WSJ reported a mild “breakthrough” occurred on U.S./China trade and low level talks will begin again shortly. It’s not major progress, but it is the first positive motion we’ve seen on the issue in months, so that is welcomed news.
On earnings, CSCO posted strong numbers after the bell and that should help support tech and tech remains, easily, the most important sector for the broad market right now (a lot of yesterday’s selling was about tech weakness, not Turkey).
Economically, UK Retail Sales beat estimates (0.7% vs. (E) 0.2%) as European related growth this week remains good.
Today focus will remain on the geo-political (progress in Turkey?) and on U.S. economic data. Philadelphia Fed Outlook Survey (E: 22.5) is the most important report today, but we also get Housing Starts (E: 1.271M), Jobless Claims (E: 215K).
Bottom line, if the dollar declines and tech leads the rally, then the S&P 500 can recoup yesterday’s losses.
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