What’s in Today’s Report:
- Fed Takeaways – Was It a Bullish Gamechanger? (Not Yet)
- Jobs Report Preview
- EIA/Oil Market Analysis
Futures are slightly higher as markets digest yesterday’s very dovish Fed statement and subsequent rally, while Chinese economic data beat expectations but still was weak in the absolute.
Chinese January Manufacturing PMI beat estimates at 49.5 vs. (E) 49.3, but it still signals outright contraction, so this doesn’t imply stabilization in that economy.
Other economic data from Europe, including Euro Zone GDP and German Unemployment, met expectations.
Today there are two economic reports, Jobless Claims (E: 220K) and the Employment Cost Index (E: 0.8%) but neither should materially move markets.
So, focus will move back to earnings (there are a lot of reports today and GE has started us on the right foot) and any headlines from the U.S./China trade talks. Regarding U.S./China trade, we don’t expect a deal from this meeting, but more reports of progress will support (and likely extend) yesterday’s rally.