Rise and shine everyone.

It’s a relatively quiet week from a macro data perspective but, we do have 15 Fed speeches this week to keep us company. We also get the FOMC minutes this week on Wednesday. We’re starting to get conflicting views from the Fed speakers, some consider inflation trending in the right direction, while others still think it will be a while before we see any signs of easing. Price action hasn’t been swayed much by speakers last week; it was more a function of the overall macro data.

The big news this week is Nvidia earnings on Wednesday after the close. We also get earnings from the other major retailers after last week’s Home Depot and Walmart. This week we have Target, TJ Maxx, Williams-Sonoma, Ross Stores, and on the tech side, Zoom and Snowflake.

US Equity Futures are trading marginally higher. It’s a slower morning with much of Europe closed for Bank Holiday.

Asian markets are still absorbing news of China’s measures and Japan’s possible tightening starting in June. Japanese 10Y yield jumped to a new cycle high. But, despite that move, the JPY has not seen much strengthening. Traders are now thinking that a rate hike may be the only option to stabilize the Yen. The Nikkei also closed higher despite this move.

US Treasury Yields and the Dollar are about flat. Crude Oil is pulling back marginally, while metals - gold, silver, and copper are all higher this morning alongside Bitcoin.

Chart of the Day

Earnings growth is starting to broaden out. This is exactly what we want to see. However, according to this chart from BofA, we’re seeing some of the handoff to the rest of the Mega Cap tech companies. We need the rest of the market to take a larger share of earnings to make sure that this rally continues to be sustainable and not as lopsided as it has been with only the Mega Cap Tech companies driving the market.

Calendars

(news taken from Reuters, FT, Bloomberg; Calendar from Trading Economics)