Medicare Agent News: Pfizer After Covid

Monday, February 6, 2023

Pfizer After Covid

By Alex Eule Monday, February 6

Priced In. January's surprising jobs report continued to reverberate through markets today, more than 72 hours after it was released. On the one hand, economists were talking about a softer landing and the reduced chance of recession. On the other, investors were bracing for more rate increases.

Both circumstances seem plausible -- and that's what makes it so hard to be a stock buyer right now. Goldman Sachs reduced its likelihood of a recession this year to 25% (down from 35%). That's good news for stocks.

At the same time, Atlanta Fed President Raphael Bostic told Bloomberg News on Monday that the latest jobs data meant the Fed had more work to do. “And I would expect that that would translate into us raising interest rates more than I have projected right now,” he said.

Bostic doesn't currently have a vote on the Fed's rate-setting committee, but his comments could be a sign of things to come from Federal Reserve Chairman Jerome Powell, who is scheduled to speak at the Economic Club of Washington, D.C. at noon Eastern tomorrow.

Newly hawkish commentary from Powell could reverse more of the gains that stocks made last week in the wake of the Fed's latest meeting, after which Powell said, "The disinflationary process has started." That line came before we knew the U.S. economy had added 517,000 jobs in January.

Goldman Sachs Chief U.S. Equity Strategist David Kostin wrote late last week that "recent macro developments have strengthened our economists' confidence in a soft landing and reduce equity downside risk in the near term." But, he added, that upside for stocks is likely limited from here. "A soft landing is already priced in the U.S. equity market," Kostin wrote.

"Economic data and market performance have seemingly conspired against monetary policy thus far in 2023," John Lynch, chief investment officer for Comerica Wealth Management, wrote today. "Despite consistent messaging from Fed Chair Jerome Powell, the financial markets continue to outperform, setting up the potential for a standoff that may not end well for investors, or the Fed."

That standoff could get more interesting when Powell speaks tomorrow.

On Monday, the S&P 500 shed 0.6%, falling for a second consecutive day. The more rate-sensitive Nasdaq Composite was off 1%.