What Fed Tapering Means for Markets

What’s in Today’s Report:

• What Fed Tapering Means for Markets (Short Term Positive, Medium Term Uncertainty)
• EIA and Oil Market Update

Futures are slightly higher following a generally quiet night of news as markets digest Wednesday’s Fed decision.

Economic data was sparse and the only notable report was German Manufacturers’ Orders which missed estimates, falling –1.8% vs. (E ) –1.3%.

There was no progress on the Democrat’s spending bill overnight as Manchin remains a holdout, but a deal is ultimately expected in the coming days or weeks.

Today focus will be on economic data and we get two notable reports:  Jobless Claims (E: 277K) and Productivity and Costs (E: -1.5%, 5.3%) and one Fed speaker, Quarles at 1:50 p.m. ET.  But, unless there’s a major surprise from the data, focus will turn back to Congress and the fate of the Democrat spending bill, and any headlines that imply quick passage without any material tax hikes will be a short-term tailwind on stocks.