Updated Market Outlook (Factoring in Rising Yields)

What’s in Today’s Report:

  • Updated Market Outlook (Factoring in Rising Yields)
  • Weekly Market Preview:  All About Powell and Treasury Yields
  • Weekly Economic Cheat Sheet:  Key Inflation Report and Jobless Claims

Futures are moderately lower as Treasury yields resumed their rise early Monday morning.

The 10 year Treasury yield rose as high as 1.39% earlier this morning and that’s weighing on futures as the rise in yields continues from last week.

Economic data was sparse overnight as the only notable number was the German Ifo Business Expectations survey which beat estimates (94.2 vs. (E) 91.8).

There was no notable news regarding stimulus or vaccines over the weekend, and the market still expects the JNJ vaccine to be approved this Friday (2/26) and for the stimulus bill to pass the House around the same time (with Biden signing the bill sometime in mid-March/early April).

Today there are no notable economic reports nor any Fed speakers (Powell speaks tomorrow), so the focus today will be on Treasury yields.  If they continue to rise, I’d expect modest to moderate pressure on stocks ahead of Powell’s testimony tomorrow (where markets will want some comfort that the Fed isn’t worried about yields).