[Platinum Insights] (7.10.23)

Good morning. 

Wall Street’s main indexes ended the week lower on Friday after a mixed jobs report showed the domestic economy added the fewest jobs in 2-1/2 years in June, although a decline in unemployment and a higher-than-anticipated wage growth pointed to a still strong labor market. 

U.S. stock index futures edged lower this morning as investors stayed on the sidelines ahead of a key inflation report, while weak data out of China fanned worries of a looming economic slowdown.  

Wednesday will see the release of the consumer prices report for June, with the month-over-month change of the headline consumer price index expected at 0.3%, faster than the 0.1% increase in May. Core consumer prices may have increased at a slightly slower pace of 0.3% compared to the 0.4% growth in May. 

The BLS is due to release its producer price inflation report on Thursday. The headline PPI is expected to have increased by 0.2% month-over-month and 0.4% year-over-year in June. This compares to May’s 0.3% drop and 1.1% growth, respectively. 

Chinese consumer price figures for June teetered on the edge of deflation for the first time in over two years, while producer prices fell at their fastest pace in over seven years, adding to concerns about the health of the world’s second-largest economy. 

The second-quarter earnings reporting period kicks off this week and investors will assess the impact of tight monetary conditions and fears of an impending looming economic slowdown on businesses. Overall, earnings for the S&P 500 constituents are expected to fall 5.7% in the second quarter, Refintiv data showed. 

WTI crude futures were slightly lower around $73.23 a barrel. Gold prices were little changed around $1920 an ounce while US 10 Year Note Bond Yield was 4.07 percent. 

Have a great day!