Four Assumptions for the Next Leg of the Rally

What’s in Today’s Report:

• Four Assumptions for the Next Leg of the Rally
• Weekly Market Preview:  Will the Fed Acknowledge Tapering is Being Discussed?
• Weekly Economic Cheat Sheet:  All About the Fed (But Notable Growth Data this Week Too)

Futures are slightly higher following a quiet weekend as markets look ahead to Wednesday’s FOMC decision.

The G-7 meeting in England produced a lot of headlines including broad agreement on a minimum corporate tax.  But there were little specifics of any new policies released and the meeting won’t impact markets.

Economic data was sparse as the only notable number was Eurozone Industrial Production which rose 0.8% vs. (E) 0.4%.

Today there are no economic reports and no Fed speak (the Fed meeting starts tomorrow so officials are in their “quiet period” ahead of the meeting) so for markets to extend last week’s rally we’ll need to get corporate commentary that confirms inflation pressures are “peaking.”  Absent that, I’d expect stocks to largely tread water ahead of Wednesday’s FOMC decision.