An Important Week for the Markets

What’s in Today’s Report:

  • Weekly Market Preview: An Important Week for the Markets
  • Weekly Economic Cheat Sheet: Focus on the Fed

U.S. equity futures are tracking international shares higher this morning as investors digest mostly positive economic data and a stable bond market while the market focus is already turning ahead to this week’s Fed meeting.

Economically, Chinese Industrial Output and Retail Sales both beat expectations in the first two months of the year with the headlines jumping 35.1% and 33.8%, respectively, however, the unemployment rate edged up 0.1% to 5.5%.

Looking into today’s session, there is just one economic report due out ahead of the bell: Empire State Manufacturing Index (E: 14.8). Investors will be looking for a good number but if the report is too strong and causes the 10-year yield to extend Friday’s rise, that would likely weigh on stocks.

There are no other major catalysts on the calendar today and markets will begin to look ahead to this week’s Fed meeting (which begins tomorrow) however the 10-year yield will remain a key influence on equities as a continued move higher will act as a strengthening headwind for equities, especially for tech stocks.