After a headscratcher of a week last week when it came to market expectations for the FOMC and the size of any potential rate cut at its meeting next week, thanks to a blackout on any further communications ahead of next week’s meeting, we won’t have to worry about any more conflicting headlines. It’s going to be a busy week for earnings, so make sure to check out our Earnings Calendar for a look at what’s on top. In terms of this week’s reports so far, results haven’t been particularly encouraging. Of the eleven companies reporting so far today, just over half have exceeded EPS forecasts while less than a third have topped revenue estimates. One notable loser today is Lennox (LII). Not only did the company miss top and bottom-line estimates but they also lowered guidance citing cooler weather int he quarter.
Read today’s Morning Lineup to get caught up on news and stock-specific events ahead of the trading day and a discussion of trade data out of Korea.
Now that the FOMC is in blackout mode, hopefully, the volatility related to expectations for the July meeting will start to subside. After all the ups and downs of the last week, markets are now pricing in a three-quarters chance of a 25 bps cut and a one in four chance of a 50 bps cut. This comes after Friday’s comments from Boston Fed President Rosengren on Friday that he doesn’t see the need for a cut at all.
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