What’s in Today’s Report:
- What to Make of This Market (In Plain English)
- Weekly Market Preview: Is the Recovery Pausing/Stalling?
- Weekly Economic Cheat Sheet: Jobs Friday, Manufacturing Today
Futures are marginally higher following decent economic data combined with some mild progress on stimulus hopes.
Global manufacturing PMIs were generally better than expected as the Chinese PMI rose to 52.8 vs. (E) 51.1 while the EU number also beat expectations (51.8 vs. (E) 51.1).
On the stimulus front, both parties acknowledged some progress on negotiations, but they remained far apart.
Today focus will be on the ISM Manufacturing PMI (E: 53.5) and the market needs/wants a strong number here to help refute the growing list of indicators that imply the economic recovery is pausing/stalling.
Regarding stimulus, headlines will move the market this week but more broadly, investors are expecting some significant progress by the end of the week. If that progress doesn’t occur, that will become a headwind on stocks.
Finally, there are also two Fed speakers today, Bullard (12:30 p.m.ET) and Evans (2:00 p.m. ET), but neither should move markets.