What to Watch: Factory/Durable Orders, Equity Earnings, Geopol

US FI futures trading higher for the most part, yield curves bull flattening (2s10s -3.799 at 20.748) with short end weaker. Volume improved with London back from extended holiday weekend, TYM2 just over 305k.

• Midmorning economic data at 1000ET:
  • Factory Orders (-0.5%, 1.2%); ex-trans (0.4%, --)
  • Durable Goods Orders (0.8%, 0.8%); ex-trans (1.1%, 1.1%)
  • Cap Goods Orders Nondef Ex Air (1.0%, 1.0%); ship (0.2%, --)
  • JOLTS Job Openings (11.266M, 11.200M)
• Main focus on Wed's FOMC, 50bp hike anticipated, more to follow
• Treasury supply resumes Thu: 4W, 8W bill auctions at 1130ET
• Stocks weaker, off lows (ESM2 -11.0 at 4140.0), earnings anncs' continue: Pfizer Q1 EPS $1.62 vs. $1.5 est, trades lower on FY revenue guidance $98-$102B vs. $106.8B est. After the bell: Prudential Fncl (PRU), AIG, Air BNB (ABNB), Starbucks (SBUX), Advanced Micro Devices (AMD) to name a few.
• Geopol risk:Market remains alert for developments on Russia war in Ukraine, knock-on effect to markets. European Commissioners are due to vote on the sixth round of sanctions against Russia (appr 0830ET), with the likelihood that a form of oil embargo is included but with carve outs or long lead times for EU member states particularly reliant on Russian crude.
• Cross-Asset: Crude weaker (WTI -1.35 at 103.82) as China covid curbs choke demand. Gold near steady at 1863.14.