What’s in Today’s Report:
- Jobs Report Preview
- EIA and Oil Market Analysis (Still Bullish)
Futures are slightly higher as markets continue to digest the week’s early rally following a quiet night of news.
Economic data underwhelmed as the UK Construction PMI and EuroZone Retail Sales both missed estimates, but neither number is moving markets this morning.
On the stimulus front, the Democrats continue to move forward with reconciliation and markets now expect a stimulus bill between $1.5-$1.9T sometime in March.
Today stimulus headlines will continue to drive markets and the real question now is whether the stimulus bill ends up more towards $1.9 trillion (more bullish for stocks, yields and inflation in the short term) or $1.5 trillion (less bullish for stocks, yields and inflation in the short term).
Away from stimulus expectations, the key number today is Jobless Claims (E: 835K) and markets will want to see a continued decline to show the labor market is not deteriorating further. We also get two Fed speakers: Kaplan (1:00 p.m. ET) and Daly (2:00 p.m. ET), but neither should move markets.