Combatting FOMO (Fear of Missing Out)
What’s in Today’s Report:
- Why Stocks Rallied Yesterday (There Were Legitimate Reasons)
- Combatting FOMO (Fear of Missing Out)
- What Happens When Stimulus Checks Stop Coming?
- EIA and Oil Market Update
Futures are modestly lower as markets digest Wednesday’s big rally, following a quiet night of news.
Germany finalized its stimulus plan, but it didn’t include an incentive program for traditional (non-electric) car purchases and that’s causing mild disappointment and European shares are lower as a result.
Economic data was again better than feared as Euro Zone Retail Sales dropped –11.7% vs. (E) -18.0%.
Today there are two key events that could move markets:
First, the ECB is expected to increase its QE program (called the PEP) by € 500 bln. If that does not happen, markets will be disappointed because stimulus remains a key driver of this rally.
Next, weekly jobless claims (E: 1.790M) remain very important and we need to see both initial claims and continuing claims fall further this week, and if that does not happen markets will be disappointed, especially given the rally of the past 10 days.
