Market Multiple Levels: S&P 500 Chart
What’s in Today’s Report:
- Market Multiple Levels: S&P 500 Chart
Stock futures are trading at record highs this morning as mostly underwhelming economic data overnight bolsters the case for more monetary and fiscal stimulus.
Economically, inflation data out of China and Germany narrowly missed estimates while French Industrial Production was disappointing, all of which supports the case for more stimulus to support the global economic recovery.
This morning, market focus will be on the CPI report (E: 0.3%) before the bell, and then attention will shift to Fed Chair Powell’s virtual speech in the early afternoon (2:00 p.m. ET).
Aside from those two key events, there is a 10-Yr Treasury Note Auction at 1:00 p.m. ET, which again has the potential to impact the yield curve (a big enough spike in the 10-year yield would act as a headwind on stocks).
Finally, earnings season continues with a few notable companies releasing Q4 results today: KO ($0.41), GM ($1.62), UBER (-$0.53).
Bottom line, as long as CPI does not run “hot,” Powell maintains a rather dovish tone, and there are no negative developments regarding the stimulus bill, the path of least resistance will remain higher for stocks in the near term.