What Earnings Are Saying
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What’s in Today’s Report:
- What Earnings Are Saying About Current Economic Growth
Futures are modestly lower following a night of underwhelming earnings results.
INTC (stock down 10% premarket) gave soft guidance while V and TMUS (stocks down –3% each) posted underwhelming results.
Economically, German GfK Consumer Climate missed expectations (-29.7 vs. (E) -24.5) but that’s not moving markets.
Today focus will be on the Core PCE Price Index (E: 0.2% M/M, 3.0% Y/Y) and this number needs to meet or be lower than expectations to help support the stock rally. If Core PCE prints solidly above expectations look for higher yields and lower stock prices. The other notable economic number today is Pending Home Sales (E: 1.3%) but that shouldn’t move markets.
On the earnings front, the key report today is AXP ($2.65) and specifically we’ll be watching for is their commentary on consumer spending (the more positive, the better for markets). Other notable earnings include CL ($0.85) and NSC ($2.90).
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