What’s in Today’s Report:
- What Market Bulls Are Assuming
- Weekly Market Preview
- Weekly Economic Cheat Sheet (Are Jobless Claims About to Rise Again?)
Futures are sharply higher thanks mostly to momentum from a big rally in Chinese stocks.
The Shanghai Composite surged nearly 6% on Monday, despite the lack of a discernable, positive catalyst. Growing confidence in the economic recovery combined with a flood of retail investment fueled the stock gains.
In the U.S., coronavirus cases continued to rise over the weekend, although there was no material acceleration from the pace of the past several days.
Today the key economic report is the June ISM Non-Manufacturing PMI (E: 49.0), and if that can break above 50 that will be further confirmation that the economic recovery is happening faster than most thought possible (and it should be a tailwind on stocks). Additionally, the White House has teased an announcement today of positive developments in treatment of the coronavirus, although the exact timing of this announcement, and what exactly it entails, is unclear.