Cautious Trading Ahead of Prices & Production Data
Equities are likely to see their fifth straight weekly gain, but the day is a busy one and surprises in the data could cause markets to jump either way. The main events today are Consumer Prices an hour before the bell, Industrial Production at 9:15, and a fresh look at Consumer Confidence at 10:00. Ahead of all those releases, markets are looking to open moderately lower, following a 0.7% gain in the benchmark S&P yesterday.
On the fixed income front, BMO’s Sal Guatieri writes: “Treasuries remain firm following yesterday’s big 12-point rally, which was spurred by a steady rhythm of bad news (retail sales down, jobless claims up, bankruptcies up, foreclosures at record highs, guitar great Les Paul dies). The weak data helped the market claw back more than half of last week’s 37-basis points drubbing (the worst since 2003).”
Aside from US data, a major headline this morning is that Hong Kong’s GDP expanded 3.3% in the second quarter, following a 4.3% decline in Q1. Textbooks will be citing that to explain what V-shaped recovery means.
Key Releases Today:
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