What’s in Today’s Report:
- Normal Pullback or Something Bigger?
- Weekly Market Preview
- Weekly Economic Cheat Sheet (Three Big Reports This Week)
Futures are bouncing modestly following Friday’s selloff. The weekend was a quiet one from a market standpoint.
The Wuhan virus situation didn’t change (the virus continues to spread) but there are reports that existing anti-viral drugs are helping to treat the disease (a small positive).
Economically, The EU and British manufacturing PMIs slightly beat estimates, but still remain weak on an absolute basis (47.9 and 50.0 respectively).
Today the key economic report is the January ISM Manufacturing PMI (E: 48.7), and following Friday’s bad Chicago PMI, the market needs a decent number to help reassure investors the U.S. economic remains on solid footing. There’s also one Fed speaker, Bostic at 4:30 p.m. ET, but he shouldn’t move markets.
Regarding any Wuhan headlines, the key remains whether they will add more pressure to global growth. If we hear about more plant closures/flight & travel restrictions, etc. that will pressure stocks.