Is It Time to Allocate to Growth?
What’s in Today’s Report:
- The Start of 2023 Isn’t the Time to Allocate to Growth
- Case-Shiller and FHFA House Price Indices
- Chart: Value Massively Outperformed Growth in 2022
Stock futures are modestly higher in cautious trade this morning with Treasuries largely steady and overseas markets mixed as focus remains on China’s reopening efforts.
China’s government will resume the issuance of passports and visas while Hong Kong dropped PCR testing requirements for travelers, however the rapid move away from “Zero Covid” is beginning to rekindle inflation worries which could become a renewed headwind on equities.
Looking into today’s session, there are two economic reports to watch: Pending Home Sales (E: -0.5%) and the Richmond Fed Manufacturing Index (E: -6) but neither should impact Fed policy expectations or meaningfully move markets in quiet holiday trading.
There are no Fed speakers to watch today but the Treasury will hold a 5-Yr Note auction at 1:00 p.m. ET and following yesterday’s large move higher in yields, surprisingly strong or unexpectedly weak demand could influence equity market trading.