EmailThe situation today is simple. The stock market is in a holding pattern ahead of the Fed policy announcement tomorrow.
S&P futures suggest a modest up open. Action yesterday was light and stable.
The earnings numbers continue to be of concern. Yesterday, the nine largest companies all reported revenue below expectations. Today, there are a few companies with better revenue reports, but there are still plenty of warning signs.
Archer Daniels Midland, BP, and Coach stock prices are lower after earnings reports, while Pfizer, Goodyear Tire, and Valero Energy are higher. The individual reports aren't moving the broader market, but revenue trends are weak and guidance for upcoming quarters is worrisome. Both revenue and earnings forecasts for the third quarter for the S&P 500 in aggregate are negative, and falling.
June personal spending was flat, but that was part of the already released second quarter GDP number. June personal income was up 0.5%, about as expected.
The Case-Shiller home price index will be out at 9:00 ET, the Chicago PMI at 9:45 ET, and July consumer confidence at 10:00 ET.
Surveys now show that most economists expect the Fed to hold off on any additional easing measures until at least September. That doesn't mean the markets aren't priced for easing. Today might be a second straight boring day, but tomorrow is likely to be volatile.
Founder and Chairman, Briefing.com
