Why the Gaetz Withdrawal Sparked Yesterday’s Rally
Why the Gaetz Withdrawal Sparked Yesterday’s Rally: Start a free trial of The Sevens Report.
What’s in Today’s Report:
- Why the Gaetz Withdrawal Sparked Yesterday’s Rally
- Examining the Strange Positive VIX and S&P 500 Correlation
Futures are modestly weaker following surprisingly disappointing economic data from Europe.
The EU November flash PMIs tumbled (48.1 vs. (E) 50.2) with all three metrics (composite, manufacturing and services) falling below 50 and signaling contraction.
Similarly, the UK November flash PMIs were also weak (49.9 vs. (E ) 51.8) signaling a sudden drop in activity.
Today focus will remain on data and the more Goldilocks the data, the better for markets. The key reports today are the November Flash Manufacturing PMI (E: 48.8) and Flash Services PMI (E: 55.2) while we also get Consumer Sentiment (E: 73) and, within that report, the 1-Yr Inflation expectations (E: 2.6%). Again, in-line to slightly soft data will be the best outcome for stocks, as that implies solid growth and encourages a rate cut in December.
Finally, there is one Fed speaker today, Bowman (6:15 p.m. ET), but she shouldn’t move markets.
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