What Is the “TACO Trade?”
What’s in Today’s Report:
- The “TACO Trade” and Why It Matters to You
- Durable Goods Orders Show Cracks Emerging in Business Spending
- Consumer Confidence Rebounds – Chart
Equity markets initially traded with a risk-off tone overnight thanks to a rise in global bond yields on the back of a soft Japanese government debt auction, but futures are back to flat ahead of the Fed minutes this afternoon and NVDA earnings after the close.
There is one lesser followed economic report today: Richmond Fed Manufacturing Index (E: -9.0), but barring a major surprise, the releasee is unlikely to materially move markets given other catalyst in focus.
One of those catalysts will be the Fed minutes release this afternoon at 2:00 p.m. ET as traders will look for any fresh insight as to when the next rate cut will occur or clarity on the FOMC’s outlook for the economy/inflation in the quarters ahead.
As mentioned, a soft JGB auction overnight weighed on global risk assets. As such, today’s Treasury auctions, the first for 4-Month Bills at 11:30 a.m. ET and the second for 5-Yr Notes at 1:00 p.m. ET both have potential to impact equity trading today (recall it was a 20-Yr auction that sparked last week’s mid-week selloff).
Finally, one of the last major earnings releases of the season will hit after the close with NVDA (E: $0.80) reporting post-market. A few other noteworthy late-season reports today include: DKS ($3.37), ANF ($1.36), M ($0.14), CRM ($1.87), and ELF ($0.57).
