Four Pillars of the Rally Updated (Still Intact)
What’s in Today’s Report:
- Four Pillars of the Rally Updated (Still Intact)
- Weekly Market Preview: Does Delta Cause a Pullback? Can Earnings Impress Investors?
- Weekly Economic Cheatsheet: Flash PMIs Friday are the Key Report.
Futures are moderately lower as more governments implement restrictions in reaction to the Delta COVID variant.
More cities in California reinstituted indoor mask mandates, Australia implemented more lockdowns and select countries in Europe upped restrictions as Delta COVID cases continue to rise, causing concern among investors that the economic recovery might lose momentum.
On infrastructure, the bi-partisan $1 trillion deal is in danger of collapsing as early as this week, which would increase the chances of tax hike headlines over the next month.
There’s only one notable economic report today, the Housing Market Index (E: 82.0), and just two notable earnings reports, AN ($2.65), TSCO ($2.94), so the tenor of COVID headline and infrastructure will drive markets, and if there are more restrictions announced or the bipartisan infrastructure bill dies, expect more weakness in stocks.
