Why Stocks Dropped on Tuesday
What’s in Today’s Report:
- Why Stocks Dropped on Tuesday
- Why Are Agricultural Commodities Hitting New Highs Too?
Futures are modestly lower despite solid tech earnings, as the 10-year yield and oil continued to drift higher overnight.
There were no new strikes between the U.S. and Iran overnight but tensions remain elevated and oil and the 10-year yield are up slightly as a result.
DELL earnings beat estimates and the stock is up 8% pre-market as AI related earnings remain very strong.
Today focus will remain primarily on geopolitics and any positive headlines about ceasefire progress should pressure oil and yields and help lift stocks.
On the economic front, there are two notable reports today: ADP Employment Report (E: 48K) and Fed Beige Book (2:0 p.m. ET). Solid (but not great) numbers from ADP and generally supportive commentary of economic growth from the Beige Book should underscore a solid economy but not raise rate hike concerns (that’d be the best case for stocks).
