The S&P 500 Futures are up as we have another busy earnings day. Reports have generally been positive and outperformed. Today we are expecting reports from NVIDIA, Walt Disney, PepsiCo, Astrazeneca, Duke Energy, Illumina, Palantir, Roku, Kraft Heinz, Barclays, Credit Suisse, Seagen, Affirm Holdings, Tyson Foods, Verisign, West Pharma, Zebra Technologies, Kellogg, GoodRx, Expedia, Bio-Rad Labs, Generac, Cognex, Molson Coors, and Mohawk Industries.
Treasuries continued to recover and yields slipped following a cooler than expected CPI report. A reflation trade and some growing angst over inflation has weighed on bonds for months, though pressures accelerated after the Georgia vote as the Democrats took control of Congress. Treasury trading is likely to be on the quiet side near term.
The long bond tested 2% and the 10-year challenged 1.2% last week. But the softer than expected inflation data added to the recovery after technicals helped cap the upside. The wi 30-year finished 4 bps lower at 1.905%, with the 10-year off 3.5 bps to 1.145%. Stocks closed mixed Wednesday as the run to record highs took a breather.
- U.S. calendar focuses on weekly jobless claims, auctions, and earnings
- Canada data calendar thin this week; wholesale trade is due Friday
- Dollar majors seeing narrow ranges in languid trading conditions
- EGB yields have declined while stocks moved cautiously higher in light trade
- Fed’s Powell repeated we are not even thinking about withdrawing support
Weekly jobless claims are featured, with initial claims expected to fall -49k to 730k, and continuing claims seen dropping to 4.400 mln from 4.592 mln. The Treasury auctions $27 bln of 30-year bonds and announces 20-year bonds and 30-year TIPS.