MARKET WRAPS
Watch For:
PPI for June; Weekly Jobless Claims; Canada Manufacturing Survey for May; earnings from JPMorgan Chase, Morgan Stanley
Opening Call:
Stock futures fell on Thursday as the prospect of the Federal Reserve responding aggressively to 40-year high inflation left traders wary at the start of the U.S. corporate earnings season.
Traders were pricing in a 75% probability that Jerome Powell and colleagues will raise interest rates by 100 basis points in less than two weeks time as they try to crush inflation that has jumped above 9% to a 41-year high.
Investors continued to fret that higher borrowing costs will slow the economy and crimp corporate profits. To that end, attention turns to the second-quarter earnings season, which begins in earnest on Thursday, with results from the big U.S. banks, JPMorgan Chase and Morgan Stanley.
Analysts…
