What’s in Today’s Report:
- Jobs Report Preview
- EIA Analysis and Oil Update
Futures are solidly lower as negative China/COVID headlines and lackluster economic data weighed on markets.
Chinese authorities put the city of Chengdu (population 17 million) in a COVID lockdown, reminding markets “Zero COVID” is still in effect.
Economically, global manufacturing PMIs were underwhelming as all major regions (EU, UK and China) posted numbers below 50 (signaling contraction).
Today focus will be on economic data and the most important number is the ISM Manufacturing PMI (E: 52.2). Markets need to see an in-line reading, because if it’s a very strong number that will increase hawkish concerns about the Fed, and if it’s a very weak number (below 50) that will spike stagflation concerns. Outside of the PMI we also get Jobless Claims (E: 248K) and Unit Labor Costs (E: 10.7%) and there’s also one Fed speaker, Bostic at 3:30 p.m. ET.