We’re once more seeing blended market exercise this morning within the pre-market, with the Dow seeking to open down 120 factors and the S&P -10 factors as of a half-hour previous to the bell. The Nasdaq now seems to open 25 factors into the inexperienced on the one-year “anniversary” of its bottoming-out within the pandemic-led bear market. Since then, the Nasdaq has grown a strong 100%, however remains to be round 5% off its all-time highs set about six weeks in the past.
On the docket at this time might be public testimony on Capitol Hill by Fed Chair Jay Powell and former Fed Chair/present Treasury Secretary Janet Yellen in entrance of the Home Committee on Federal Companies. Each will doubtless be answering loads of questions regarding the regular construct of inflation metrics along with an historic stimulus bundle hitting the financial system presently. Nobody expects seismic shifts in both authority’s testimony, however their language might be finely parsed.
New House Gross sales for February will even be launched after at this time’s open, with 879K new gross sales anticipated from final month. Present House Gross sales, launched yesterday, got here in considerably shy of each expectations and the earlier month’s totals, on provide calls for that present present householders immune to placing their properties up on the market this present day. New House Gross sales additionally has an issue on the availability aspect, with lumber provides and different supplies at very excessive costs traditionally.
Earlier than at this time’s open, we see a brand new learn on the Present Account Deficit for This autumn, with the headline barely worse than anticipated: -$188.5 billion versus -$187 billion analysts have been searching for. The Q3 quantity was revised decrease as properly, to -$180.9 billion versus the -$179 billion initially reported. This represents a brand new cycle low, however off the all-time deficit round -$219 billion on the peak of the U.S. housing bubble within the mid-to-late 2000s.
Deficits had been stuffed in considerably upon the Nice Recession backstopping of monetary establishments, and held considerably regular till the previous couple of years, after we began seeing a brand new downward trajectory. However the deficit actually fell off the desk across the begin of 2020 — pre-pandemic however nonetheless within the midst of the U.S.-China commerce warfare. For February 2021, the deficit on Items has expanded, whereas the excess on Companies has contracted considerably.
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