Updated Market Outlook (Post Earnings, Trade Truce and Fed Decision)

What’s in Today’s Report:

• Updated Market Outlook (Post Earnings, Trade Truce and Fed Decision)
• Weekly Market Preview:  Will the Shutdown End This Week? (If Not, Possible Market Headwind)
• Weekly Economic Cheat Sheet:  ISM PMIs and ADP Are Important This Week

Futures are solidly higher mostly on momentum following a generally quiet weekend of news.

There was no disruptive news over the weekend so investors focused on the results of last week:  1) Continued AI Enthusiasm, 2) Trade truce and 3) Fed rate cut/end of QT.

Economically, EU and UK manufacturing PMIs met expectations (50 and 49.7 respectively).

Today we do get some potentially important economic data via the ISM Manufacturing PMI (E: 49.4) and markets will want to see stability (so not falling too far from 50).  On the Fed front, there are two speakers today, Daly (12:00 p.m. ET) and Cook (2:00 p.m. ET) and the more dovish their commentary, the better for markets (given recent uncertainty around a December rate cut).

Finally, on the earnings front, ON ($0.59), PLTR ($0.12) and two moderately important AI linked tech companies, so markets will want to see solid results from both.