One Last Hurdle for the Santa Rally
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What’s in Today’s Report:
- One Last Hurdle for the Santa Rally
- Weekly Market Preview: Can Goldilocks Data Offset Political Volatility?
- Weekly Economic Cheat Sheet: The Last Big Week of 2024
Futures are slightly lower on political volatility as Trump issued more tariff threats and made another unorthodox cabinet appointment while President Biden pardoned his son Hunter.
Trump threatened 100% tariffs on BRICs countries (Brazil, Russia, India, China) if they abandon the U.S. dollar. In addition, Trump made another unorthodox cabinet pick with Kash Patel as FBI Director.
Finally, President Biden reversed course and gave an unconditional pardon to his son Hunter, sparking bi-partisan criticism.
Today focus will turn from politics to actual economic data and the key report today is the ISM Manufacturing PMI (E: 47.6). As has been the case, an in-line to slightly soft number would be the best case for stocks as it wouldn’t signal any further deterioration in the manufacturing sector and, at the same time, keep a Fed rate cut more likely than not.
We also have two Fed speakers today, Waller (3:15 p.m. ET) and Williams (4:30 p.m. ET) and any commentary that makes a December rate cut more likely will be a positive for markets.
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