If Inflation Drops and Growth Slows, What Benefits?

What’s in Today’s Report:

  • If Inflation Drops and Growth Slows, What Benefits? (Answer Inside)
  • Why the Manheim Used Vehicle Value Index Was Important yesterday
  • EIA and Oil Market Analysis

Futures are marginally higher on additional China reopening headlines, although China embarking on a re-opening process is now well known and mostly priced into stocks.

The South China Morning Post reported that Hong Kong will ease isolation rules for COVID-positive residents and travelers, in what is the latest step towards reopening.

Economic data was sparse overnight and the only notable report was Japanese GDP which slightly beat estimates (-0.2% vs. (E) -0.3%).

Today’s focus will be on weekly Jobless Claims (E: 228K) as markets need to see further deterioration in the labor market to move the Fed closer to an ultimate “pivot.”  Any move towards 250k in should be welcomed by markets.