Why Stocks Dropped (What We’ve Been Worrying About)
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What’s in Today’s Report:
- Why Stocks Dropped (What We’ve Been Worrying About)
- Jobs Day (Updated Preview)
Futures are sharply lower and are extending Thursday’s losses following more disappointing tech earnings and as worries about economic growth grow.
Tech earnings disappointed last night as AMZN (down 8%), MCHP (down 5%) and INTC (down 20%, not a typo) all posted disappointing earnings or guidance.
Geo-politically, concerns are rising about a direct Israel/Iran conflict and that’s boosting oil and gold prices.
Today focus will be on the jobs report and expectations are as follows: 180K Job Adds, 4.1% Unemployment Rate and 3.7% y/y Wage Growth. Given Thursday’s poor economic data and the pop in growth concerns, a slightly better than expected number would be the best-case scenario for stocks and help support the “rest” of the market (tech will be under pressure today regardless because of earnings). A number substantially below expectations (or a rise in the unemployment rate to 4.2% or higher) will increase growth concerns and further weigh on stocks.
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