When Do High Yields Become a Bearish Gamechanger? Indicator to Watch

What’s in Today’s Report:

• When Do High Yields Become a Bearish Gamechanger?  Indicator to Watch.

Futures are little changed following a generally quiet night of news as investor focus turns towards economic data.

Geopolitically, U.S./Iran negotiations yielded no material progress although increased oil exports from the region are keeping the rise in oil modest (up 1% overnight).

Economically, Chinese September PMIs met expectations.

The important economic data for this week really begins today and continues through Friday and the key for markets is Goldilocks data that implies solid growth but doesn’t raise rate hike expectations.

Today, important reports to watch are (in order of importance): Core PCE Price Index (E: 0.3% m/m, 3.2% y/y), ADP Employment Report (E: 70K) and, to a lessor extend, Final Q2 GDP (E: 1.5%).

Regarding the Fed, the parade of speakers continues this week and the less hawkish they are, the better for stocks.  Speakers today include: Barkin, (1:30 p.m. ET), Cook (3:25 p.m. ET), Goolsbee (5:10 p.m. ET) and Kashkari (6:00 p.m. ET).

Finally, earnings matter today with a key report from Micron (MU ($31.35) and the stronger the demand, the better.