Is the Outlook Really This Bad?
What’s in Today’s Report:
- Is the Outlook Really This Bad?
- Weekly Market Preview: FOMC Decision Wednesday (Will It Be More Hawkish Than Feared?)
- Weekly Economic Cheat Sheet: A Busy and Important Week (ISM Manufacturing PMI today, FOMC Decision Wednesday, Jobs Report Friday)
Futures are enjoying a modest oversold bounce following Friday’s selloff, but there was no improvement over the weekend on the three headwinds pressuring stocks: Chinese growth worries, Ukraine war and hawkish Fed.
Economic data was mixed as the April Chinese manufacturing PMI dropped further (to 47.4 from 49.5) while the EU PMI slightly beat estimates (55.5 vs. (E) 55.3) and German Retail Sales underwhelmed (-0.1% vs. (E) 0.3%).
Today focus will be on the ISM Manufacturing PMI (E: 58.0) and markets need to see a solid number to push back on stagflation concerns. If we get a weak number, expect the selling to resume and stagflation fears to grow.
Earnings season will begin to wind down this week but there are still some important results coming and some we’re watching today include: NXPI ($3,17), CAR ($3.54) and MGM ($-0.09).
