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More Proof of How Vulnerable This Market is to AI Disappointment

/in , /by

What’s in Today’s Report:

  • More Proof of How Vulnerable This Market is to AI Disappointment
  • Weekly Market Preview: Can Yields Continue to Move Lower?
  • Weekly Economic Cheat Sheet: Inflation in Focus This Week (CPI Wednesday)

Futures are slightly higher following mixed geopolitical news over the weekend.

Fighting between the Saudis and Houthis escalated substantially over the weekend following Houthi attacks on the Riyadh airport and the increased tensions are pushing oil prices higher (Brent up 0.75% this morning).

In Russia/Ukraine, President Trump announced an “energy ceasefire” between Russia and Ukraine that would push prices lower if it holds, although the market is rightly skeptical that it will.

Today there are no notable economic reports and just one Fed speaker, Hammack (12:10 p.m. ET), so focus will remain on geopolitics and AI (as it’s been for the last week).

 

Updated Market Outlook Post Fed Decision & AI Disappointment (Still Bullish?)

/in , /by

What’s in Today’s Report:

  • Updated Market Outlook Post Fed Decision & AI Disappointment (Still Bullish?)
  • Weekly Market Preview: Does Data Stay Goldilocks (And Further Fuel RSP over SPY?)
  • Weekly Economic Cheat Sheet: Jobs Report Tomorrow is the Key Event

Futures are solidly higher on rising hopes that Kevin Warsh, not Kevin Hassett, would be the next Fed Chair.

President Trump said that Fed Governor Warsh had moved to the top of his Fed Chir list and that’s positive as markets view Warsh as more independent then Hassett.

Economically, Chinese data disappointed as retail sales, industrial production and Fixed Asset Investment missed estimates.

Today focus will be on economic data via the first data point for December, Empire Manufacturing (10.6).  This is a volatile metric but as long as it’s mostly stable (so no big drop) it shouldn’t weigh on markets.

We also get the Housing Market Index (E: 38) and have two Fed speakers: Miran (9:30 a.m. ET) and Williams (10:30 a.m. ET).  Of the two, Williams is the most important and if he’s dovish, it should help support markets.