Why Stocks Dropped (Two Main Reasons)
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What’s in Today’s Report:
- Why Stocks Dropped (Two Main Reasons)
- Jobs Day (Abbreviated Jobs Report Preview)
Futures are modestly higher following “ok” earnings from major tech firms overnight and ahead of the jobs report.
AMZN and INTC posted solid earnings while AAPL results were only mildly disappointing and the cumulative reports are boosting futures this morning.
Economically, the UK manufacturing PMI dropped to 49.9 vs. (E) 50.3, keeping BOE rate cut expectations elevated.
Today focus will be on economic data, starting with the jobs report and expectations are as follows: 106K Job-Adds, 4.1% UE Rate, 4.0% y/y Wage Growth. The jobs report isn’t the only important report today, however, as we also get the October ISM Manufacturing PMI (E: 47.6).
Bottom line, both numbers need to come in close to expectations to help stocks extend this morning’s early bounce. Data this week has been a bit “hot” and it’s pushed Treasury yields higher and Fed rate cut expectations lower and that’s weighed on stocks. In-line reports this morning would be Goldilocks and would reverse that trend (and further fuel this morning’s bounce).
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