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What to Watch: Housing Data, Earnings, Mideast Geopol Risk

MARKET INSIGHT

Tsys weaker on light summer volumes (TYU2<200k), near low end of narrow overnight range, yield curves mildly steeper at the moment, 2s10s still inverted at -18.443 (+1.072).

  • Limited data kicks off at 0830ET:
    • Housing Starts (1.549M, 1.580M); MoM (-14.0%, 2.0%)
    • Building Permits (1.695M, 1.650M); MoM (-7.0%, -2.7%)
  • Tsy auctions: No supply, resume Wednesday w/ $14B 20Y Bond re-open (912810TH1) at 1300ET
  • Stock earnings: Pre-open announcements have all beaten est's so far, Signature Bank NY (SBNY) $5.26 vs. $5.057, Truist (TFC) $1.20 vs. $1.146, JNJ $2.59 vs. $2.553, Hasbro (HAS) $1.15 vs. $0.935, Halliburton (HAL) $0.49 vs. $0.449.
    • Still waiting on Lockheed Martin (LMT) $3.974 est and Ally Financial (ALLY) $1.865 est. After the close: Netflix (NFLX) $2.915 est, Interactive Brokers (IBkR) $0.912 est and JB Hunt (JBHT) $2.344 est.
  • Geopolitical: Mideast focus: Iran's Khamenei To Erdogan: Syria Strike Would Destabilise Region: Reuters carrying comments from Iranian Supreme Leader, Ayatollah Ali Khamenei to Turkish President Recep Tayyip Erdogan following their bilateral talks in Tehran.
    • Comes as Russian President Vladimir Putin arrives in Tehran for tripartite talks w/Erdogan and Iranian President Ebrahim Raisi on the situation in Syria.

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