What’s in Today’s Report:
- Yield Curve Update: Critical Levels to Watch
- Housing Market Index Takeaways
Futures have steadily melted higher overnight, tracking risk-on moves in most international markets on optimism for more Chinese stimulus and improving investor sentiment towards the trade war and health of the global economy.
Over the past two weeks, the PBOC has lowered its “one-year medium-term lending facility” and its “seven-day reverse repo rate” increasing the odds that the Chinese central bank provides further stimulus in the near-term.
Looking into today’s session, the list of potential catalysts is limited as there is just one economic report due to be released: Housing Starts (E: 1.320M) and one Fed official scheduled to speak shortly before the bell: Williams (9:00 a.m. ET).
Home Depot reported underwhelming earnings this morning as they slashed their sales forecast which will likely be a topic of discussion today but so far, stock futures are largely shrugging off the sharp drop in HD shares.
With the trade war still the markets primary focus, stocks will remain sensitive to any headlines, positive or negative, regarding the phase one deal and potential for tariff relief.