Too Much of a Good Thing?
What’s in Today’s Report:
- Can There Be Too Much Of A Good Thing in Markets?
- Weekly Market Preview: Stimulus Expectations and Vaccine Optimism Remain the Two Drivers of Stocks
- Weekly Economic Cheat Sheet: Inflation
Futures are modestly higher following a quiet weekend of news as global markets rose on momentum from last week’s rally.
The stimulus process continued as Democrats passed procedural votes on Friday and a $1.5-$1.9 trillion stimulus bill is expected to become law sometime in the next 4-6 weeks (this expectation remains the single biggest driver of the stock rally).
Economically, the only notable report was German Industrial Production, which slightly missed estimates (but that’s not moving markets).
Today there are no economic reports and only one Fed speaker, Mester at 12:00 PM ET, so markets will continue to be driven by stimulus headlines and vaccine optimism, and as long as there aren’t any material disappointments on either front, the path of least resistance for stocks remains higher.
