US stock futures opened with modest gains as investors looked ahead of a big week for corporate earnings. Treasuries also rallied as investors scaled back bets for an aggressive policy easing from the Fed. St. Louis Fed President Bullard, a 2019 voter and one of the most dovish policy makers, said in an interview on Friday that he would like to go for a quarter percentage point rate cut at the upcoming meeting. He added that this cut would be a recalibration rather than a start of multiple cuts. Investors are now fully pricing a quarter point rate cut at the July meeting. Meanwhile, as the corporate earnings season continues, more than a quarter of the S&P 500 companies will be reporting their results this week including Facebook, Alphabet, Amazon, McDonald’s, and Boeing. More than 15% of S&P 500 companies have reported their second quarter results so far and about 78.5% of those companies came in above analysts’ expectations while 67% of those companies reported better-than-expected quarterly revenues. Elsewhere, WTI crude added to its gains from Friday, trading above $55 a barrel this morning as tensions in the Persian Gulf remained elevated after Iran seized a British tanker.
We have a very light economic calendar today. Chicago Fed National Activity Index in June came in below expectation of 0.08 at -0.02, following an upwardly revised reading of -0.03 in May. Later today, the US Treasury is scheduled to auction off $36 billion of 3-month bills and $36 billion of 6-month bills at 8:30 AM (PT).
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US stock futures opened with modest gains as investors looked ahead of a big week for corporate earnings. Treasuries also rallied as investors scaled back bets for an aggressive policy easing from the Fed. St. Louis Fed President Bullard, a 2019 voter and one of the most dovish policy makers, said in an interview on Friday that he would like to go for a quarter percentage point rate cut at the upcoming meeting. He added that this cut would be a recalibration rather than a start of multiple cuts. Investors are now fully pricing a quarter point rate cut at the July meeting. Meanwhile, as the corporate earnings season continues, more than a quarter of the S&P 500 companies will be reporting their results this week including Facebook, Alphabet, Amazon, McDonald’s, and Boeing. More than 15% of S&P 500 companies have reported their second quarter results so far and about 78.5% of those companies came in above analysts’ expectations while 67% of those companies reported better-than-expected quarterly revenues. Elsewhere, WTI crude added to its gains from Friday, trading above $55 a barrel this morning as tensions in the Persian Gulf remained elevated after Iran seized a British tanker.
We have a very light economic calendar today. Chicago Fed National Activity Index in June came in below expectation of 0.08 at -0.02, following an upwardly revised reading of -0.03 in May. Later today, the US Treasury is scheduled to auction off $36 billion of 3-month bills and $36 billion of 6-month bills at 8:30 AM (PT).
The curve has bull-flattened with UST 10-Year yield down 2.27 bps.