Four Reasons Stocks Dropped Yesterday
What’s in Today’s Report:
- Four Reasons Stocks Dropped Yesterday (And Whether It Keeps Going)
Stock futures are bouncing modestly this morning following yesterday’s steep selloff amid rising COVID-19 cases globally and continued gridlock on stimulus in Washington.
There were no market-moving economic reports overnight leaving the focus on the latest resurgence in coronavirus cases as new infection rates test record highs across many of the world’s “hot spots.”
Today, there are two key economic reports to watch: Durable Goods Orders (E: 0.4%) and Consumer Confidence (E: 102.0) as well as two releases on the housing market: Case-Shiller House Price Index (E: 0.4%) and FHFA House Price Index (E: 0.7%).
There are no Fed officials scheduled to speak today but earnings season remains very busy with releases from: PFE ($0.70), MMM ($2.25), CAT ($1.15), RTX (0.48), and JBLU (-$1.91) due out ahead of the bell, and MSFT ($1.53) and AMD ($2.56) after the close.
Beyond those few potential catalysts, markets will remain keenly focused on the stimulus negotiations in Washington as hopes for a deal continue to fade which has weighed heavily on stocks in recent sessions. And if optimism for a pre-election aid deal continues to dwindle, that will likely remain a significant headwind on risk assets given the recent rise in COVID-19 cases globally.