Rising Headline Risk But Fundamentals Still Solid
What’s in Today’s Report:
- Market Outlook: Rising Headline Risk But Fundamentals Remain Solid
- Weekly Market Preview: A Key Week for Earnings and the Fed Outlook
- Weekly Economic Cheat Sheet: Will the Fed Hint at Tapering on Wednesday?
Futures are slightly lower ahead of a busy week and following a generally quiet weekend.
On the vaccine front, the FDA re-approved use of the single-dose JNJ vaccine on Friday, but this was widely expected and as such isn’t an incremental positive.
On infrastructure spending, Dem. Senator Manchin said he doesn’t support passing infrastructure via a reconciliation, which further complicates getting a plan ultimately passed. But, it’s still very early in the legislative process, and as such, the market will mostly ignore infrastructure headlines for the next several weeks. If there’s no progress on a compromise by Memorial Day-ish (with actual passage expected around Labor Day-ish), then the market will begin to react to infrastructure headlines.
Today focus will be on Durable Goods (E: 2.0%) and also earnings after hours, with the two key reports being TSLA ($0.78) and NXPI ($2.21).
