A Market Blind Spot
What’s in Today’s Report:
- A Market Blind Spot To Watch
- Weekly Market Preview: Earnings In Focus This Week
- Weekly Economic Cheat Sheet: More Evidence of a Plateau? (Global Flash PMIs Friday)
Futures are sharply higher thanks to better than expected global economic data following a generally quiet weekend.
Chinese economic data beat estimates as IP (6.9% vs. (E) 5.8%) and Retail Sales (3.3% vs. (E) 1.6%) handily beat estimates, while GDP slightly missed but was still solid at 4.9%.
The U.S. political outlook was unchanged over the weekend, with the market assuming a Biden Presidency and Blue Wave on Nov 3rd (and subsequent stimulus not just in 2020 but also 2021).
Today there is one notable economic report, Housing Market Index (E: 83) and two important Fed speakers, Powell (8:00 a.m. ET) and Clarida (11:45 a.m. ET) but at this point expected monetary policy is well known so I don’t expect their comments will move markets.
So, we expect stimulus headlines to again drive the market in the very short term. There is not an expectation of stimulus before the election, so if there’s any positive movement on that in the next few days, that will help stocks extend the rally.
