Three Keys to a Bottom (Specifics)

What’s in Today’s Report:

• Three Keys to a Bottom (Specifics)
• Weekly Market Preview:  Can Easing Chinese Restrictions Fuel a Bigger Bounce?
• Weekly Economic Preview:  May Data in Focus (Empire Today, Philly Wed)

Futures are modestly lower on disappointing Chinese economic data and as India banned wheat exports.

Chinese Industrial Production fell –2.9% vs. (E) 0.5% and Retail Sales plunged –11.1% vs. (E) -6.6%, underscoring the economic damage from the COVID lockdowns.

Geo-politically, India banned the export of wheat over the weekend, a move that will likely exacerbate global shortages and keep wheat/commodity prices high.

Today’s focus will be on economic data via the Empire State Manufacturing Index (E: 15.0), which is the first data point for May.  Markets will want to see stability in the data to ward off stagflation concerns and the bigger the drop in the price index, the better.  We also get one Fed speaker, Williams (8:55 a.m. ET), but he shouldn’t move markets.

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