What’s in Today’s Report:
- Four Keys to a Market Bottom – More Progress But Not There Yet
- Weekly Market Preview
- Weekly Economic Cheat Sheet
Futures are marginally lower following a quiet weekend as markets digest Friday’s big rally.
Economic data was mixed overnight as Japanese Composite PMI and German Manufacturers’ Orders missed estimates. However, German Retail Sales (1.4% vs. (E) 0.4%) and EU Retail Sales (0.6% vs. (E) 0.2%) beat expectations. So, the data reflects a still generally muddled global economic outlook.
Regarding trade, the next round of U.S./China trade talks began in Beijing but there were no notable headlines, although none were expected this early so the silence isn’t a negative at this point.
Today focus will be on economic data as we get the ISM Non-Manufacturing PMI (E: 58.4). Despite Friday’s strong jobs report there are growing worries about the U.S. economy so a good ISM Non-Manufacturing (or service sector) PMI should help stocks keep most of Friday’s gains. Finally, we also have one Fed speaker today, Bostic at 12:40 p.m. ET, but he shouldn’t move markets.