Why Earnings Caused Yesterday’s Selloff
What’s in Today’s Report:
- Why Earnings Results Caused Yesterday’s Selloff (The Results Weren’t Actually That Bad)
- Chart: PKG Dropped Sharply on Cautious Guidance
Strong earnings and guidance from tech giants MSFT (+8%) and GOOGL (+1%) after the close yesterday are supporting gains in U.S. equity futures today while more cautious results in Europe are weighing on overseas markets.
Economically, Australian CPI fell to 7.0% vs. (E) 6.9% y/y in the first quarter, down from 7.8% in Q4, but the inflation reading is still well above target and serves as a reminder that global central banks still have work to do in order to get inflation under control.
Looking into today’s session earnings season slows down somewhat with only a few notable companies reporting, including: BA (-$0.98), and GD ($9.34) before the bell, and META ($1.96) after the close.
That will leave investors focused on economic data early with Durable Goods Orders (E: 0.9%) and International Trade in Goods (E: -$90.0B) set to be released. There are no Fed speakers today but there is a 5-Yr Treasury Note auction at 1:00 p.m. ET that could move yields and impact stocks in afternoon trade.
In Case You Missed It: Our Special Technical Market Update for Sevens Report Subscribers Was Delivered Monday Morning
We continue to receive overwhelmingly positive feedback from our subscriber base regarding Monday’s special technical market update.
The report included analysis on all asset classes starting with the major equity indices across various time frames before looking at the latest investment style and sector trends. Additionally, we dove into currency, commodity, and Treasury market technicals to help identify trends that present both risks and opportunities to portfolios in these historically uncertain market conditions.
