NY Stock Exchange

Four Pillars of the Rally Updated (More Cracks Appearing)

/in /by

What’s in Today’s Report:

  • Four Pillars of the Rally Updated (More Cracks Appearing)
  • EIA and Oil Market Update (All About Demand)

Futures are modestly higher following a generally quiet night of news.

Economic data from Europe again wasn’t as bad as feared (German GfK Consumer Climate was (-6.2 vs. (E) -11.9) and that’s alleviating some COVID related global growth fears.

Politically, the risks of corporate, personal and investment tax increases are rising and that will become an increasing headwind on the rally over the coming weeks.

Today focus will remain on Jobless Claims (E: 725K) and if that number can drop below 700k that will be a positive for markets.  The other notable event today is the seven year Treasury auction at 1:00 p.m. ET.  Last month’s disastrous seven year auction accelerated the spike higher in Treasury yields, so if there’s another poor auction, expect higher yields and lower stocks.

Finally, there are multiple Fed speakers today including Clarida (10:10 a.m. ET), Williams (10:30 a.m. ET), Bostic (12:00 p.m. ET) and Evans (1:00 p.m. ET) but it’s unlikely they’ll say anything new.