What’s in Today’s Report:
- Dusting Off An Old Leading Indicator for Recessions
- Was Yesterday an “All Clear?”
Futures are extending Tuesday’s rally thanks to decent overnight earnings and despite universally disappointing economic data.
FB earnings beat after the bell yesterday and the stock rallied 3% after hours, capping a decent day of earnings.
Economically, Chinese Oct. Manufacturing PMI declined to 50.2 vs. (E) 50.6. Japanese IP and German Retail Sales also missed expectations.
Today focus will remain on earnings. GM ($1.26) is the highlight but if the broad number of results are “ok” that should continue to help sentiment. Economically the ADP Employment Report (E: 178K) and Employment Cost Index (E: 0.7%) are the two key reports, and both need to show “Goldilocks” readings (firm but not strong enough to make the Fed hawkish) for this bounce to continue.