What Is Happening With the Bond Market?

What’s in Today’s Report:

  • What Is Happening With the Bond Market?

Stock futures are little changed amid a stable bond market this morning following good economic data while focus shifts to the unofficial start of earnings season and the latest consumer inflation report in the U.S.

Economically, the NFIB Small Business Optimism Index came in at 102.5 vs. (E) 99.2 for the month of June.

Today, earnings will come into focus as the big banks kick off the Q2 reporting season. Notable companies releasing results today include: JPM ($3.05), GS ($9.57), PEP ($1.52), and FAST ($0.41).

The latest U.S. inflation data will also be released ahead of the opening bell: CPI (0.5% m/m, 5.0% y/y) while there are several Fed officials scheduled to speak in the afternoon: Bostic (12:00 p.m. & 2:30 p.m. ET), Kashkari (12:45 p.m. ET), Rosengren (2:50 p.m. ET).

Bottom line, the number of influences on equities clearly picks up today and for stocks to hold the latest record highs we will need to see 1) earnings at least meet estimates, 2) CPI data not run “hot,” and 3) Fed chatter remain accommodative and importantly not take a hawkish turn.


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