A Volatile Start to 2024, But Don’t Read Too Much Into It
A Volatile Start to 2024, But Don’t Read Too Much Into It: Start a free trial of The Sevens Report.
What’s in Today’s Report:
- A Volatile Start to 2024, But Don’t Read Too Much Into It
- SPDR Reveals Nearly 5% Divergence Between Best and Worst Sectors Yesterday
- Chart – S&P Global Manufacturing PMI Remains in Contraction Territory
Stock futures are modestly lower and Treasury yields are extending their early 2024 gains as some of the dominant money flows from late last year continue to unwind to start 2024.
Economically, Germany’s Unemployment Rate held steady, as expected, at 5.9% in December which is not moving markets.
Today, trader focus will be on two key economic reports in early trade with the ISM Manufacturing Index (E: 47.2) and JOLTS (E: 8.75 million) report both due out shortly after the opening bell. Motor Vehicle Sales (E: 15.4 million) will also be released today.
Additionally, there is one Fed speaker: Barkin (8:00 a.m. ET) that will be closely watched ahead of the release of the December FOMC Meeting Minutes this afternoon (2:00 p.m. ET).
Bottom line, start-of-year portfolio rebalancing is likely to continue to dominate the tape today, however, if economic data comes in “Goldilocks” and the Fed Minutes don’t derail the market’s dovish policy expectations for 2023, stocks and bonds should both be able to stabilize as calendar-driven volatility begins to subside.
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