Micro Positives vs. Macro Negatives
What’s in Today’s Report:
- Micro-Economic Positives vs. Macro-Economic Negatives
- Weekly Market Preview: COVID Trends and Economic Data
- Weekly Economic Cheat Sheet: Jobs Week
Futures are moderately higher following solid economic data and positive lockdown comments from Dr. Fauchi.
Global July manufacturing PMIs were generally solid, as the EU PMI beat estimates (62.9 vs. (E) 62.6) while the UK PMI was in line (60.4). The Chinese PMI missed estimates (50.4 vs. (E) 50.8) but remained above 50. Overall, the PMIs implied the global economic recovery was on going.
Dr. Fauchi stated over the weekend that he did not think the U.S. would reinstitute lockdowns despite rising COVID cases (which is a positive for the economy).
Today the key economic report will be the ISM Manufacturing PMI (E: 60.8) and markets will be looking for a “Goldilocks” number – one that meets or exceeds expectations but is not so strong that it makes the Fed less dovish. COVID headlines will also potentially move markets but unless there are signs of people changing their behavior (TSA Throughput, consumer surveys) then COVID headlines shouldn’t move markets.
