What’s in Today’s Report:
- Why the Long-Term Bull Case Got Stronger Last Week
- Weekly Market Preview: Will Lockdown Worries Cause a Near Term Pullback?
- Weekly Economic Cheat Sheet: Is the Economic Recovery Starting to Stall?
Futures are down nearly 2% this morning as concerns about a coronavirus mutation offset news of a stimulus deal being reached.
England went into lockdown again after a mutation of COVID-19 started to spread rapidly throughout the country, sparking fears of an extension of the pandemic. Positively, scientists are confident that the vaccine will work for COVID mutations as well, but that’s not helping stocks this morning as concerns rise about wider/longer economic lockdowns.
On stimulus, Congress agreed to a $900 billion stimulus bill and a vote is expected today. However, this was already priced into stocks (that’s why it’s not causing a rally).
Today there are no economic reports and no Fed speakers, so focus will remain on stimulus and the coronavirus.
Regarding stimulus, the stimulus bill is expected to pass Congress today (so markets will expect that to happen). Regarding coronavirus, any headlines that imply this mutated coronavirus is spreading across the globe will cause further downside in stocks (because it could lead to greater/longer economic lockdowns, which has been the focus of the market throughout the pandemic).