And later, former saks ceo steve sadove markets trying to get back some of what was lost on tuesday. As you know by now, the dows worst day since july, up about 130 here s p continues to circulate now around 44. 50 you have a little bit more tame vix picture below 16 and that tenyear coming off of 4. 22 this morning. Tech is lagging after yesterdays selloff and now the more recent underperformance of tech after the outperformance of tech so far yeartodate can tech continue to rally as these yields, even if theyre pulling back, settle in at higher levels. And the debate continues about whether the economy is too hot to get rid of inflation for the fed. Just this morning, we got some housing numbers that were better than expected. Industrial production, a litter better than expected after yesterdays retail sales a lot of jokes about the magnificent one or two, as opposed to magnificent seven, although cisco tonight could give us a view at least of enterprise spend and whether that gets a
Economists were expecting at least a 4 . Property investment is a sore point, still eight. 5 down. Worse still 8. 5 down. A slight pickup in the jobless rate. I cannot seem to find a be. It seems like a miss across the board on activity numbers coming through. We are still waiting on some other numbers. In some ways we thought this would be soft but not this soft but the rate cuts in the seven day. Markets are not really reacting as much. Yvonne currency continues to be something traders are ignoring, pboc fixes given the pressures we are sitting on the currencies. Yields are taken higher globally. We could be seeing a scenario of 754 china but looking at how markets do say were seeing slight declines so taking it in stride right now. Maybe a cushion in markets in terms of sentiment. The retail sales print is the lowest we have seen since last december. National bureau of statistics should start their press briefing to give more context. And we have helen chow out of bank of america. W
More downgrades. This time not on the sovereign but u. S. Banks, 10 downgrades overnight. Tom there is a bank story in italy as well. That is the economic thing to look at. Overwhelming everything here this morning led by the news out of china is it is deflation tuesday. Im looking at the screen and i have not seen that screen in 4, 5, six years. Jonathan dreadful. Tom we were out in front of the story, there is deflation in the air. I can bore you with eight ways, all you have to do is say even oil breaks down. Jonathan every time i get data out of china, it is downside surprise. Lisa one interesting area, the divergence between the u. S. And china has been accelerating. What you have seen with respect to the u. S. Dependence on china is it is decreasing even though in europe it is not. I wonder how much those stories are linked. The underperformance of germany and the outperformance of the United States. Tom the banks have to deal with this disinflationary, deflation tendency. You go
Were always keeping an eye on tech. For example, apple share, can they stem what has been a sevenday slide . Chip stocks, though, continue to outperform. And the other big story, that weight loss boom and novo nordisk overtakes the market. Market reaction to the jobs number, not just the headline and the unemployment at 3. 9 but revisions taking about a third away the last couple of months. I think those of us who are used to the precision of Artificial Intelligence and generative a. I. Are just in shock that there could be a number thats this far off. This is the kind of thing that jensen huang could solve with his eyes closed. Why its so important, this takes away what was the hot number that made us a great threat and took away a spring rate cut. 3. 9. We know they remind me of the dow jones average. Very interesting headline, but its not really whats at the guts of this, but in a political year, what that says is, hey, look, the economy is slowing and maybe the fed should have pres
Disney also in focus this ahead, of course, that will be an after the bell Earnings Report but the companys espn unit striking that deal with ten entertainment. We will keep an eye on eli lillys record run sparked by not just its diabetes drug but also that very encouraging study in terms of the broader impact of those weight loss reduction drugs. Also an upgrade this morning jeffries. Thank you start with disney and that espn Sports Betting deal sounds like this morning that you wonder why markets not making a bigger deal of it on the disney side. Yeah, because i think one aft things theres 55 Million People who play fantasy. What people usually do is they have their lineup, they put their team on the espn site, but then they go to draftkings to play daily fantasy and daily fantasy is huge in this country now, i think Jason Roberts has done a fantastic job at draftkings, and disney had a stake, but now i think youll stay on the disney espn site to do your gambling and that is very pow