Though reaction to this morning’s economic releases is relatively muted, the Nasdaq futures seem to be more negatively reactive than the S&P futures.
Though reaction to this morning’s economic releases is relatively muted, the Nasdaq futures seem to be more negatively reactive than the S&P futures. July Core PCE, the most watched indicator of today’s batch, was reported in line with expectations, up 0.2% on the month. Year-on-year, core PCE rose 3.3%, again in line with predictions but still considerably above the 2% target. July durable goods orders were stronger than expected, up 1.1% vs. estimates of 0.6%. Ex-transportation orders, up 0.4%, were short of forecasts of 0.6%. Nothing in these releases does much to alter today’s investment landscape.
What’s interesting is the lack of reaction to the continued decline in oil, which is down another $1.60 to under $81/barrel (WTI). Less than a week ago, WTI crude traded nearly $88/barrel. Integrated oil has responded with marginal declines in XOM and COP, but there’s been less cheer than one might expect from the airlines. Either there’s opportunity in the airlines, or there’s another shoe to drop in the oil story.
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