It feels like everything is going wrong in the market. The major indexes broke below their 200-day averages, and some 60% of companies that have reported results have traded lower afterwards.
Still, is there maybe too much pessimism in the air? She thinks so. “Growth stands to slow, but that’s very different from calling for an all-out stop in economic activity. For instance, the consumer may start to spend less and switch to cheaper brands, but for the most part, everyone who still wants a job has one.
The market U.S. stock futures ES00, +0.58% NQ00, +0.71% rose, after two weeks in which the S&P 500 SPX has dropped nearly 5%. Gold futures GC00, +0.39% traded over $2,000 an ounce. The yield on the 10-year Treasury BX:TMUBMUSD10Y rose, while oil futures CL00, -1.26% fell. The economic calendar is loaded this week: the employment cost index on Tuesday, job openings, the ISM manufacturing report and the Fed decision on Wednesday, and nonfarm payrolls on Friday.