What’s in Today’s Report:
- Why the Fed is Causing the Pullback (Not Omicron)
- Weekly Economic Cheat Sheet: All About Inflation (Key Reports Friday)
- Weekly Market Preview: Can tech stabilize?
Futures slightly higher following generally positive comments on Omicron over the weekend.
There were multiple articles and commentary from public health officials suggesting the Omicron variant is more contagious but produces mild symptoms. Also, existing vaccines appear to give protection against severe illness, although markets are waiting for official word from both PFE and MRNA.
Economic data was mixed as German Manufacturers Orders fell –6.9% vs. (E) -0.5% while the UK Construction PMI rose to 55.5 vs. (E) 52.0 but the numbers aren’t moving markets.
Today there are no economic reports and no Fed speakers. Like Friday, how the Nasdaq trades will likely determine the day, as markets want to see the tech sector stabilize after intense weakness late last week. If Nasdaq can stabilize, the broad market can bounce.