The Bullish Recipe (Why Stocks Are So Resilient)

What’s in Today’s Report:

• The Bullish Recipe (Why Stocks Are So Resilient)
• Weekly Market Preview:  Will COVID Weigh on the Recovery?
• Weekly Economic Cheat Sheet:  Key Inflation Data This Week

Futures are slightly lower following a mostly quiet weekend of news as there were no major changes to the COVID outlook or the economic recovery.

Economic data was solid as German and Chinese exports for July both beat estimates.

Chinese CPI rose 1% vs. (E) 0.8% and that may reduce the amount of stimulus officials unleash on the economy (so potentially negative for global growth).

Today focus will be on JOLTS (E: 9825M) and on Fed commentary following the jobs report (Bostic at 10:10 a.m. ET and Barkin at 11:20 a.m. ET).  But, unless JOLTS are a major surprise or Fed officials are shockingly hawkish, these events shouldn’t move markets.  As such, the tenor of COVID headlines (and whether we are seeing behavior changes) will continue to drive markets in the near term.