What to Make of the Pullback
What’s in Today’s Report:
- What to Make of the Pullback
- Weekly Market Preview: Will the Fed be Dovish Enough?
- Weekly Economic Cheat Sheet: Fed Wednesday, but also important data Tues/Thurs
Futures are sharply higher as markets enjoy an oversold bounce following a marginally positive weekend of news.
Astra-Zenica (AZN) announced their COVID-19 vaccine trial was back on in the U.K., although it remains paused on other countries.
There was about $60 bln on pharma M&A announced, and that is also generally helping sentiment.
Economic data was sparse although EU Industrial Production slightly beat estimates (4.1% vs. (E) 4.0%.
Today there is no notable economic data nor any Fed speakers, and like both Thursday and Friday, the actual news overnight is not as positive as the rally in futures implies. So, also like the past few days, the key will be whether stocks can hold the early gains and the Nasdaq should lead. If it turns negative by lunchtime (as it has the past two trading days) look out for another Thursday repeat.