Good morning,
Following the S&P 500’s 8th straight week of gains, there is at least a hint of peace in the air this morning as markets begin the holiday-shortened week. Futures are higher by roughly +0.70% an hour before the cash market opens. We have heard versions of these accord rumors before; however, one notable difference this morning is that bond traders appear to be buying into the story as well, with yields moving meaningfully lower amid some easing in inflation concerns. As always, we’ll see how it unfolds.
Elsewhere, this week brings several important technology earnings reports, including Dell, Marvell, Salesforce, and Snowflake, along with results from several high-profile retailers such as Abercrombie & Fitch, AutoZone, Best Buy, and Dick’s Sporting Goods. On the economic front, markets will also receive the monthly Personal Consumption Expenditures (PCE) Price Index — the Federal Reserve’s preferred inflation gauge — as well as an updated estimate for Q2 Gross Domestic Product (GDP).
Hopefully, there is some substance behind the accord rumors, though the Iranians continue to appear difficult to corral.
See you Friday.
Be well,
Mike
