The Reason Stocks Rallied Yesterday
What’s in Today’s Report:
- The Reason Stock Rallied Yesterday (Despite the Democrat’s Win and Chaos in the Capital)
- EIA Analysis and Oil Market Update
Futures are modestly higher after Congress certified the Presidential election results late Wednesday night.
Following the chaos at the Capital yesterday, Congress certified Joe Biden’s election win and President Trump committed to an orderly transition. That will help markets continue to look past the political and civil unrest related to the election, because none of it will ultimately change the outcome and Biden will be inaugurated on January 20th.
Economic data was mixed as EU Retail Sales collapsed (-6.1%) while German Manufacturers Orders beat estimates, but neither number is moving markets.
With the Presidential transition now largely settled, focus will turn back towards economic data and the two key reports today are Jobless Claims (E: 855K) and the ISM Services Index (E: 54.5). Both are equally important, and markets will want to see continued improvement in claims and stability in the services PMI, as that would imply the economic recovery isn’t losing too much momentum in the face of still surging COVID cases. Outside of economic data, we also have several Fed speakers including: Harker (9:00 a.m. ET), Bullard (12:00 p.m. ET), Evans (1:00 p.m. ET) and Daly (3:00 p.m. ET), but none of them should move markets.
