If the pipeline isn’t back up and running by the end of the week, “we could see gasoline prices go parabolic in the near term, as there are already reports of…” said Tyler Richey, co-editor at Sevens Report Research. Click here to read the full article.
What’s in Today’s Report:
Futures are down sharply with global shares this morning as positive vaccine headlines were offset by rising stagflation concerns which are weighing heavily on tech names.
PFE was awarded emergency use authorization for its vaccine in 12-15 year-olds, bolstering “re-opening” optimism but also stagflation concerns in the wake of Friday’s weak jobs report.
There were no market-moving economic reports overnight.
Today, there are a lot of moving pieces and potential catalysts. First, there is one economic report: JOLTS (E: 7.455M) as well as a 3-Yr Treasury Note auction at 1:00 p.m. ET. If the labor data shows further signs of weakness and/or the auction is weak, sending yields higher, expect more equity market weakness led by tech.
Additionally, there are multiple Fed speakers: Williams (10:30 a.m. ET), Brainard (12:00 p.m. ET), Daly (1:00 p.m. ET), Bostic (1:15 p.m. ET), and Harker (2:00 p.m. ET). They should not veer too far from the dovish narrative however if any of them do hint at “talking about tapering” or mention inflation becoming a concern, expect more volatility.
What’s in Today’s Report:
Futures are flat following a mostly quiet weekend of news as markets digested Friday’s jobs report, which was a disappointment but isn’t changing the broad market outlook (more on that in the Report).
Commodity prices continued to surge over the weekend, and that’s going to continue to increase inflation pressures. Iron Ore prices rose 10% as China tightened supply amidst the global recovery. Meanwhile, wholesale gasoline prices rose 2% following a cyber-attack that closed the Colonial Pipeline, although the outage isn’t expected to be long-lasting.
Today there are no notable economic reports and only one Fed speaker, Evans (8:30 a.m. ET, 2:00 p.m. ET). So, unless we learn the Colonial Pipeline outage will be long-lasting (which would send gasoline prices sharply higher), I’d expect relatively quiet trading today.
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