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“Mothers are often fondest of the child which has caused them the greatest pain.” ― Victor Hugo, The Hunchback of Notre-Dame
Below is a snippet of commentary from today’s Morning Lineup. Start a two-week trial to Bespoke Premium to view the full report.
With the major inflation reports behind us, today’s pre-market session is much more muted than yesterday. S&P 500 futures are basically flat, while the Nasdaq is indicated to open modestly higher. The biggest of the inflation reports for the week may be behind us, but there’s still plenty of data on the calendar today with the Philly Fed, Retail Sales, Import Prices, and jobless claims all at 8:30 while homebuilder sentiment will hit the tape at 10 AM.
Retail Sales came in modestly weaker than expected, and jobless claims came in modestly higher than forecasts. Unfortunately Import Prices unexpectedly increase rising by 0.1%. But the big surprise was in the regional Philly Fed Manufacturing report which came in at +44.3 versus expectations for a reading of -5.0. That was the biggest beat relative to expectations in that report since at least 1998. The market reaction to all the data has been minimal as S&P 500 futures remain little changed.
Bulls couldn’t have asked for a better way to kick off the first ‘real’ day of earnings seasons as the major financials kicked things off with a bang. Of the six major financials reporting, all six rallied on the day, and all but JP Morgan Chase was up over 5%!
With an average daily gain of 5.74% yesterday, the six financials that reported yesterday had their best average earnings day reaction performance of any quarter since at least the financial crisis. These companies don’t always report on the same day, so it’s not entirely an apples-to-apples comparison. Still, it illustrates how strong the reactions to these earnings reports were yesterday (even if a softer-than-expected CPI report helped to goose the returns).