“On a valuation basis this market has risen to reflect a macro environment that is materially more positive than the one we currently have, and as a fundamentals-driven analyst, that makes me nervous over…” says Tom Essaye. Click here to read the full article.
What’s in Today’s Report:
Futures are flat as more reports of an impending U.S./China trade deal offset disappointing economic data.
Japanese & EU flash manufacturing PMIs both fell below 50 in February. The Japanese PMI dropped to 48.5 while the EU reading fell to 49.2 (vs. (E) 50.4).
Multiple media outlets reported a U.S./China trade deal is almost done, but we don’t know if tariffs will be reduced.
Today focus will be on economic data as we get several potentially important reports. They are, in order of importance: Flash Composite PMI (E: 54.4), Philly Fed Mfg Index (E: 14.0), Durable Goods (E: 1.0%), Jobless Claims (E: 225k), Existing Home Sales (E: 5.04M).
If the data is good, that will fuel a further rally towards 2800 in the S&P 500, although I don’t think good data today will be enough to get us through that level (it’ll take more dovish Fed commentary on the balance sheet to do that in the near term).