What’s in Today’s Report:
- Updated Market Outlook – Increased Volatility Isn’t Automatically Bearish
- Weekly Market Preview: Do We Get More Hints of Stagflation?
- Weekly Economic Cheat Sheet: Friday’s Flash PMIs are Key.
Futures are modestly lower following disappointing Chinese economic data.
Chinese economic data joined recent U.S. data in hinting at a possible plateauing recovery and building inflation pressures. Industrial Production rose 9.8% vs. (E) 10.0% while Retail Sales gained 17.7% vs. (E) 25%. Housing Prices, meanwhile, rose 0.48% vs. (E) 0.41%.
Today the Empire Manufacturing Survey (E: 25) is the key report and markets will want to see solid data and stable prices indices. We also get the Housing Market Index (E: 83) but that shouldn’t move markets.
From a Fed standpoint, Clarida (10:05 am ET) is the headliner today while Bostic (10:00 a.m. ET) will also provide comments.