U.S. Stock Futures Are Lower Before 2Q Earnings Season
U.S. stock futures are lower. The stronger than anticipated CPI data is expected to drive a more aggressive response from the Fed. The consensus remains 75 bps but some investors believe that the Powell could go even higher, the central bank’s meeting is scheduled for July 26th & 27th. Financial institutions will kick off 2Q’22 earning season today and into this week. Last week’s jobless claims were 244k compared to 234K consensus. Treasury yields are higher, but the 10y remains below 3% at 2.97% and the curve remains inverted – the 2y is 3.23%. European markets are lower as elevated inflation fears may precipitate higher rates from the ECB, much like the Fed’s trajectory. Asian markets are lower.