New Market Catalysts

What’s in Today’s Report:

• New Market Catalysts (Election/Vaccine Are Priced In)

Stock futures are trading moderately lower this morning as yesterday’s rally to fresh record highs is digested while coronavirus cases continue to rise in the U.S.

There were over 160K new COVID-19 cases reported in the U.S. alone yesterday, the second highest daily increase on record which is tempering some of the vaccine optimism that drove yesterday’s gains.

The economic calendar picks up today as there are several notable economic reports due to be released: Retail Sales (E: 0.4%), Industrial Production (E: 0.9%), and Housing Market Index (E: 85). The market will want to see those data points continue to meet or beat expectations to confirm the recovery remains robust and any disappointment in the numbers could weigh further on stocks.

There is also a slew of Fed officials scheduled to speak today: Powell (1:00 p.m. ET), Bostic (1:00 p.m. ET), Daly (1:25 p.m. ET), Williams (2:00 p.m. ET), Rosengren (2:35 p.m. ET), and Barkin (3:00 p.m. ET). Markets will be most interested in Powell’s remarks but more broadly investors expect the Fed to remain very dovish for the foreseeable future so any signs of the contrary could trigger further profit taking in stocks.