Stansberry Research

Monday Morning Market Preview

C. Scott GarlissStansberry NewsWire

Morning Market Preview:

S&P futures are lower, down 3 to 4 points, as…

  • Earnings season kicks into high gear with 93 S&P 500 Index member companies and 12 of 30 Dow Jones Industrial Average components scheduled to release results this week.
  • Federal Reserve Governor Christopher Waller said he would support raising interest rates by 25 basis points at the next monetary policy meeting, signaling we’re getting closer to a peak.
  • Federal Reserve Bank of Kansas City President Esther George said the central bank’s rate hikes are working and she’s encouraged inflation to see inflation growth easing.
  • Federal Reserve Bank of Philadelphia President Patrick Harker said he anticipates the central bank will only raise interest rates a few more times this year.

European markets rose as…

  • German Chancellor Olaf Scholz and French President Emmanuel Macron called on European businesses to invest more to keep pace with the U.S. and China.
  • European Central Bank Governing Council member Klaas Knot said it should raise interest rates by at least 50 basis points at the next two monetary policy meetings.
  • European Central Bank Governing Council member Olli Rehn said there is room for significant interest rate increases at the upcoming monetary policy meetings.
  • International Monetary Fund Managing Director Kristalina Georgieva hinted it could upgrade its global growth assessment on an improving inflation outlook.

Asian markets gained as…

  • Japanese Prime Minister Fumio Kishida said he will nominate a new governor for the Bank of Japan next month, likely stoking speculation of rising interest rates.
  • Bank of Japan minutes from December’s monetary policy meeting showed government representatives temporarily suspended the announcement, implying they were unprepared for the interest rate change.
  • S&P Global’s preliminary manufacturing Purchasing Managers’ Index (“PMI”) data for January are expected to show global growth slowed further when they’re released Tuesday.
  • Markets in China, Hong Kong, South Korea, and Taiwan are closed for the Lunar New Year holiday.

And ahead of…

  • Building Permits for December (8 a.m.)
  • ECB's Panetta Speaks (9:30 a.m.)
  • Eurozone – Consumer Confidence Indicator for January (10 a.m.)
  • The Conference Board's Leading Economic Indicators for December (10 a.m.)
  • ECB's Lagarde Speaks (12:45 p.m.)

Pre-Market Levels:

S&P -0.08%

Asia:

Japan's Nikkei +1.33%, Japan's TOPIX +0.96%, China's Shanghai Composite closed, Hong Kong Hang Seng Index closed, South Korea's KOSPI closed, Taiwan's TSE closed

Europe:

EuroStoxx 50 +0.12%, UK FTSE +0.26%, German DAX -0.05%, French CAC -0.04%, Italian MIB -0.59%, Spanish IBEX +0.06%

Currencies:

Dollar -0.03%, Japanese Yen +0.60%, Euro +0.15%, British Pound -0.32%, Swiss Franc +0.15%, Chinese Yuan unchanged

Risk:

VIX +1.91%

Bitcoin +2.49%

Ethereum -0.31%

Growth:

WTI Crude +0.75%

Brent Crude +0.94%

Nat Gas +9.67%

Copper +0.28%

Safety:

Gold -0.12%

Silver -1.18%

Sovereign Bonds:

U.S. Treasury 10-yr yield +2.4bps at 3.50%

U.S. Treasury 2-yr yield +1.0bps at 4.18%

German 10-yr yield +0.8bps at 2.18%

French 10-yr yield +0.9bps at 2.63%

Italian 10-yr yield +2.6bps at 4.01%

Japanese 10-yr yield +0.5bps at 0.38%

Earnings:

BSRR, CPKF, EMMA, FFMH, FLXS, FRBK, IPAR, MCBI, NWBI, PEBK, PETS, PRK, SMBC, SSBK, TSBK, BOH, EFSC, SMBK, SYF, BKR, and BMRC before the open.

BBCP, BRO, CFB, CR, CXI, FNB, GSBC, HOPE, NBTB, RBB, TRST, UMPQ, ZION, SFBS, and IBTX after the close.

Calendar:

Federal Reserve in Blackout Period Ahead of Next Policy Meeting (Saturday)
China – Markets Closed for Lunar New Year Holiday
Building Permits for December (8 a.m.)
ECB's Panetta Speaks (9:30 a.m.)
Eurozone – Consumer Confidence Indicator for January (10 a.m.)
The Conference Board's Leading Economic Indicators for December (10 a.m.)
ECB's Lagarde Speaks (12:45 p.m.)