What Falls First, Treasury Yields or Earnings?
What’s in Today’s Report:
- Key Market Question: What Falls First, Treasury Yields or Earnings?
- Weekly Market Preview: All About Inflation
- Weekly Economic Cheat Sheet: CPI on Thursday is the Key Report
Futures are modestly higher mostly on momentum from Friday’s rally and despite negative COVID news from China and an APPL warning on I-Phone production.
Reports over the weekend pushed back on Chinese authorities abandoning the “Zero COVID” policy, although markets still expect some relaxing of restrictions.
APPL warned that COVID restrictions in China will impact IPhone production, although demand remains strong (so the news isn’t materially impacting the stock).
Today there are no notable economic reports but there are three Fed speakers: Mester (3:40 p.m. ET), Collins (3:40 p.m. ET) and Barkin (6:00 p.m. ET). If they even slightly push back on the idea that “Terminal” Fed Funds will be higher than expected in September, as Evans did on Friday, then stocks can extend this rebound.
