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A Historic Week Finally Arrives

/in , /by

What’s in Today’s Report:

  • A Historic Week Finally Arrives
  • Weekly Market Preview:  This is a week full of potential catalysts including:  The election, the FOMC decision, the jobs report, a potential vaccine announcement, and more QE from the BOE.
  • Weekly Economic Cheat Sheet:  Jobs Report (Friday) is the key this week.

Futures are more than 1% higher following a generally quiet weekend as markets bounce ahead of a week full of potential catalysts.

Politically, Biden maintains a wide lead nationally but polls have tightened in some key swing states (FL/AZ/IA). But, markets do still expect the “Blue Wave” final result.

Economic data was solid was Chinese, EU and UK manufacturing PMIs all beat estimates (and remained above 50).

Today we do get one important economic report, the October ISM Manufacturing PMI (E: 55.7), but that shouldn’t move markets unless is a big negative surprise.  Instead, we’ll start to get headlines and whispers about how the election is shaping up (early voting totals, etc.) and those headlines are likely to move markets today and tomorrow.  So, don’t be surprised if markets get volatile today and tomorrow, but keep in mind almost all of it will be trading “noise.”

Owning Gold for the Right Reasons

/in /by

What’s in Today’s Report:

  • Owning Gold for the Right Reasons
  • What About Silver?
  • Fed Day

Futures are marginally higher ahead of the Fed as markets bounce from Tuesday’s declines thanks to decent earnings.

Earnings after the bell were decent as AMD and SBUX both rallied, although Visa (V) made cautious comments on consumer spending late in Q2, which again implies we’re seeing a potential stall in the economic recovery.

Economically there were no notable reports overnight.

Today the key event is the FOMC Decision (E:  No Change to Rates or QE) and Fed Chair Press Conference at 2:30 p.m. ET.  Again, if there’s going to be a surprise from the Fed today (which is unlikely) it’s going to come from the press conference – so we’ll be watching.