How Much Is Left in the Rally?
What’s in Today’s Report:
- How Much Is Left in the Rally?
- Weekly Market Preview: Can Stimulus Get Done?
- Weekly Economic Cheat-sheet: Jobless Claims and Inflation
Futures are modestly lower as markets digest last week’s rally following more lockdown announcements.
California enacted a de-facto state-wide shutdown in response to rising coronavirus cases, and that is the main headwind on futures this morning.
Regarding stimulus, optimism continued to grow that a deal around $1 Trillion can be struck in the next few weeks, although nothing definitive occurred over the weekend.
Economic data was sparse as German Industrial Production beat estimates and rose 3.2% vs. (E) 0.7%.
Today there are no economic reports and no Fed speakers, so focus will remain on stimulus chatter. Senate Majority Leader McConnell remains the wildcard as he hasn’t yet voiced support for the current proposed bill, but if he does, that will significantly increase the chances it gets done before year-end (and that would cause another short term pop in stocks).