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A New Headwind on Stocks

/in /by

What’s in Today’s Report:

  • A New Headwind on Stocks (It’s Potentially a Big One)
  • It’s Not All Bad – A Legitimate Positive Scenario for Q1 ‘19
  • Weekly Market Preview
  • Weekly Economic Cheat Sheet

Futures are slightly lower as markets digest Friday’s selloff following a quiet weekend.

There was no notable geo-political (i.e. U.S./China trade) or economic (global growth) news over the weekend, and investors/markets are looking ahead to Wednesday’s FOMC Decision.

Economic data was sparse but EU Core HICP (their CPI) met expectations at 1.0% yoy.

We get two economic numbers this morning via the  Empire State Manufacturing Survey (E: 21.0) and Housing Market Index (E: 61.0) but neither should move markets.  Investors will be looking ahead to Wednesday’s big FOMC Decision and that should lead to generally quiet trading, barring any surprise headlines or tweets.  More broadly, for stocks to bounce in the near term, we need to see leadership from the tech sector, and participation from financials and energy (both of which are very, very oversold).