What the CPI Report Means for Markets
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What’s in Today’s Report:
- What the CPI Report Means for Markets
Futures are modestly lower on a surprise central bank rate hike and after ADBE posted disappointing guidance.
Brazil’s Central Bank hiked rates 100 bps (more than expected) and promised more rate hikes in the future, reflecting some mild fraying of the global rate cut cycle.
ADBE guidance missed investor expectations and it’s the second underwhelming tech report this week (after ORCL).
Today focus will be on rate cuts and economic data. First, we get the ECB Rate Decision and markets expect a 25 bps cut (if there’s no cut, that’d be a surprise negative). Economically, the key report today is Jobless Claims (E: 220K) and markets will want to see another Goldilocks reading (so around the 220k level). We also get the latest PPI report (E: 0.3% m/m, 2.6% y/y) but barring a big jump, it shouldn’t move markets.
Finally, on the earnings front, the key report today is AVGO ($1.39) and markets will want to see a solid tech report to stop this mini-trend of underwhelming guidance (from ORCL and ADBE this week).
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