What’s in Today’s Report:
- Is the Rally Starting to Stall?
- Weekly Market Preview: Important Earnings and Stimulus Negotiations
- Weekly Economic Cheat Sheet: Fed Decision on Wednesday.
Futures are moderately higher as the Republican version of the stimulus bill is largely in-line with expectations.
The Republican stimulus bill will be released today with weekly unemployment checks cut to $200-$300/week, but one time stimulus checks roughly equivalent to the last time (in both the amount and scope, i.e. the number of people eligible to receive checks). The weekly payment amount is mildly disappointing, but the scope of the stimulus checks is larger than expected so they basically offset one another.
On balance this version of the bill isn’t a disappointment, especially considering the amount of stimulus will likely increase modestly during negotiations with Democrats.
Looking forward, the negotiation process on the bill will now begin in earnest, and since Washington always has a flair for the dramatic, so expect a few “scares” over the next two weeks that imply a deal won’t get done. But, as we all know, it will get done, and likely in the next two weeks (and the sooner the better because weekly unemployment checks ended Friday, until there’s a new bill passed).
Today stimulus chatter will dominate the news wires, and beyond that there’s one notable economic report, June Durable Goods (E: 6.5%). But, it shouldn’t move markets as investors know June was a solid month for data, and instead the weekly jobless claims are the key report for this week (out Thursday).