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Political Update

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What’s in Today’s Report:

  • Political Update
  • Yield Curve Steepening:  A Future Headwind?

Futures are slightly lower as markets further digest the week’s rally following a quiet night of news.

The outlook for a stimulus bill to occur in 2020 has dimmed due to the looming Georgia Senate run-offs on Jan 5th, and that’s created a mild headwind on stocks.

On the vaccine front, Moderna (MRNA) announced that its Phase 3 trial accrued enough COVID-19 cases to be able to submit findings to regulators, so results are imminent (i.e. any day or over the next few weeks).

Today the key report is Jobless Claims (E: 741K) and markets will want to continue to see those numbers decline (or at least stay stable) as it’s looking more and more likely that stimulus will be delayed into 2021.  We also get CPI (E: 0.2%, 1.3%) and comments from Fed Chair Powell (9:30 a.m. ET), but neither should move markets unless there’s a big surprise lurking.