Why the Transmission Protection Instrument Matters to Markets
What’s in Today’s Report:
- Why the Transmission Protection Instrument Matters to Markets
- ECB Decision Takeaways (Not Hawkish Enough)
- Another Sign Inflation Has Peaked?
Stocks are resilient this morning as futures are only slightly lower despite disappointing overnight earnings and ugly economic reports from Europe.
Earnings overnight were bad with several ugly reports including SNAP (-30%), COF (-3.5%), and STX (-13%).
Economically, July flash PMIs from the EU were also ugly as the composite PMI fell into contraction territory at 49.6 vs. (E) 51.0.
Hope that inflation has peaked is the reason stocks are resilient lately, so today’s focus will be on the July Flash Manufacturing PMI (E: 51.8) and the July Flash Services PMI (E: 52.3). If these reports show meaningful drops in the price indices (like we’ve seen in the Empire and Philly Fed surveys) then that will further the idea that inflation is peaking and support stocks (as long as the headline readings aren’t huge misses).
On the earnings front, results to watch today include TWTR (-$0.06), VZ $1.34), and AXP ($2.37).
