Watch TSA Throughput (Again)

What’s in Today’s Report:

  • Watching TSA Throughput, Again

Stock futures are rebounding following yesterday’s losses as positive earnings help offset renewed volatility in Chinese markets and mixed Fed speak to start the week.

Volatility in Chinese equities spiked again overnight as regulators reportedly took aim at gaming companies, but the state-owned news article that initiated the largely tech-focused selling was removed and Chinese indices ended well off the lows.

Economically, EU PPI was the latest “hot” inflation print as it surprisingly rose 0.1% to 1.4% vs. (E) 0.6% in June, but for now, investors are largely shrugging off the release.

Today, there are two economic reports: Motor Vehicle Sales (E: 15.7) and Factory Orders (E: 0.8%) as well as one Fed official scheduled to speak: Bowman (2:00 p.m. ET), however, they should not materially move markets with the July jobs data looming.

Solid earnings have been a major supporter of equity markets in recent weeks and the Q2 reporting season remains in full swing with BABA ($2.24), LLY ($1.89), CLX ($1.29), BP ($0.61), and COP ($1.15) releasing results before the bell, and notables LYFT (-$0.24) and AMGN ($4.23) reporting after the closing bell.

Bottom line, the sharp drop in bond yields played a big role in yesterday’s stock market pullback, so if Treasuries stabilize today, stocks should be able to regain some ground however there are several risks that could see the major indexes make new lows for the week including hawkish Fed chatter and negative Delta-variant developments.