What the Bulls Need to Believe
What’s in Today’s Report:
- What the Bulls Need to Believe
- Weekly Market Preview: The Remdesivir trial results are the biggest event this week.
- Weekly Economic Cheatsheet: Fed meeting Wednesday (will they reiterate the promise to do whatever it takes to support the markets?)
Futures are moderately higher as markets are extending Friday’s rally following a very quiet weekend.
Anticipation for the reopening of the U.S. and global economy is the “reason” for the rally this morning, although nothing new occurred on that front over the weekend. Instead, there was just a lot of chatter about reopening in the media, and that is helping stocks rally absent any other important news.
There were no economic reports overnight.
Notably, markets are ignoring a greater than 10% drop in oil prices this morning, as oil markets digest last week’s volatility (and late week rally).
Today there are no economic reports and no Fed speakers, so markets will remain focused on the rollout of reopening plans by states (larger states matter most), and the results from a Remdesivir trial, which will come literally any day this week. The Remdesivir trial results need to meet optimistic expectations, otherwise we’ll likely see another drop in stocks similar to what we say last week.