What’s in Today’s Report:
- An Analogy to Help Explain This Market (Investors Loved It)
- Weekly Market Preview (Trade and Data Remain the Focus)
- Weekly Economic Cheat Sheet (Global Growth Updates This Week)
Futures are modestly higher as global markets extended Friday’s jobs report and trade-driven rally.
On trade, U.S. and Chinese officials again repeated that substantial progress has been made on Phase One, while Wilbur Ross downplayed chances of auto tariffs (something that wasn’t ever priced into the market but was a peripheral risk).
Economically, EU and British manufacturing PMIs slightly beat estimates but remained in contraction territory (45.9 and 44.2 respectively).
Today there is one economic report, Factory Orders (E: -0.5%), and normally I don’t follow it, but it’ll give us greater insight into the current state of business spending, so a better than expected reading there will be a positive. Additionally, there is one Fed speaker, Daly (3:05 p.m. ET) but she won’t move markets as Clarida and Powell made future Fed policy very clear last week – they’re done cutting barring an economic rollover.