Why Have Stocks Dropped?
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What’s in Today’s Report:
- Why Have Stocks Dropped (And Are the Reasons Legitimate?)
- Weekly Market Preview: Focus Turns to Earnings (And They Need To Be Good)
- Weekly Economic Cheat Sheet: Important Growth and Inflation Updates
Futures are solidly lower following a further increase in geopolitical tensions and a lack of domestic political progress over the weekend.
Attacks on Israel from Lebanon increased over the weekend, raising fears of a two-front conflict.
Domestically, political gridlock continued as nine Republicans are now running for Speaker. But it’s not clear any of them have enough support to actually become Speaker.
Today the calendar is quiet as there’s just one notable economic report, the Chicago Fed National Activity Index (E: 0.05), so focus will remain on yields. The 10-year yield sits at 5.00% as of this writing, and the higher it goes today, the lower stocks will likely fall. Any progress on electing a Speaker of the House will be welcomed by the markets and likely push yields lower.
On the earnings front, we get a lot of important reports later this week, including MSFT, AMZN, KO, VZ, META, and others. But they come on Tues/Wed/Thurs and today there are just two reports to watch: CLF ($ 0.46) and LOGI ($0.60).
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