I hope everyone is having a nice weekend. I have been pounding the table that the economy was re-accelerating and that rate cuts would only add fuel to the fire. We are starting to see evidence that proves exactly that. Turns out, the GOAT had the same concern in December and nobody noticed!
In terms of the data this week, we have a full calendar but the concern is if we get a government shutdown it may delay the releases of the NFP and other BLS data. On Monday, we get pending home sales. Tuesday has Case Schiller, Chicago PMI, Consumer Confidence and JOLTs. Wednesday has MBS apps, which have been on fire, ADP, S&P and ISM Manufacturing. Thursday has claims, challenger job cuts and factory orders. NFP is Friday with expectations at 39k and unchanged UR, and we also get S&P and ISM Services.
Let’s dig in.