What Caused This Rotation From Growth to Value (And How Long Can It Last?)
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What’s in Today’s Report:
- What Caused This Rotation From Growth to Value?
- How Long Can It Last?
Futures are slightly higher as tech stocks bounce modestly following better than expected earnings overnight.
Taiwan Semiconductor (TSM) posted solid earnings and the stock is modestly higher pre-market and that’s helping the tech sector to bounce and support futures.
Economically there were no important reports overnight.
Today is a busy day of economic data and central bank speak. First, on the data front, the most important report is the July Philly Fed Survey (E: 3.0) followed closely by Jobless Claims (E: 230k). Economic data so far this week has been Goldilocks and that’s helped stocks and markets will welcome more Goldilocks reports today, while “Too Cold” data will increase growth worries.
Looking at central banks, there’s an ECB Rate Decision later this morning but they aren’t cutting rates (the only question is how forcefully they telegraph a September cut and the more forcefully, the better for stocks). Looking at the Fed, we have three speakers today, Logan (1:45 p.m. ET), Daly (6:05 p.m. ET) and Bowman (7:30 p.m. ET) and if they echo recent sentiment that it’s “almost time” to cut rates that should also help support stocks.
Finally, on the earnings front, we get some notable reports today including TSM ($1.37), NFLX ($4.70) and PPG ($2.48).
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