What Can Go Right and What Can Go Wrong?

What’s in Today’s Report:

• What Can Go Right and What Can Go Wrong?
• Weekly Economic Preview:  More Tapering Talk?
• Weekly Economic Cheat Sheet:  All About Friday’s Jobs Report.

Futures are modestly higher thanks to more solid economic data combined with generally in-line inflation metrics.

The Chinese, EU, and UK final May manufacturing PMIs all largely met expectations and confirmed the global economic recovery is continuing (and importantly not deteriorating).

EU HICP (their CPI) rose 2.0% vs. (E) 1.9%, but the core reading was in line with expectations at 0.9% and as such not spiking inflation fears.

Focus today will be on the ISM Manufacturing PMI (E: 60.9) and the market will want to see a “Goldilocks” number that shows the economic rebound is continuing, but that activity isn’t so hot that it increases inflation fears.  If we get that “Goldilocks” number stocks can extend the early rally.