Another Hot Economic Report

What’s in Today’s Report:

  • Another Hot Economic Report (Philly Fed)

Futures are modestly lower on negative global COVID headlines.

Austria because the first European country to reimpose a national lockdown due to rising COVID cases and markets fear more countries could follow (especially Germany).

Inflation and economic data again implied a “hot” recovery as German PPI rose 3.8% vs. (E) 1.6% while UK retail sales rose 0.8% vs. (E) 0.5%.

There are no economic reports today although there are two Fed speakers, Waller (10:45 a.m. ET) and Clarida (12:15 p.m. ET).  Clarida’s comments will we watched but he is likely to repeat Powell’s dovish mantra (gradual tapering and no rate hikes until late 2022).  Beyond the Fed, COVID headlines are again driving short term trading, so if we see more restrictions from Europe that will be an increased headwind for stocks.