Please Mister, Please Don’t Play B117. Stocks are pointed higher in the pre-market after a significant decline on Friday. Mortgage Bonds are trading near unchanged levels to start the week.
Please Mr. Please Don’t play B117 – Former Commissioner of Food and Drugs, Scott Gottlieb, estimates that 50% of the Covid-19 cases will be from the UK strain of Covid-19 called B117. It is thought that this version of the virus is more contagious and it caused additional lockdowns overseas, which we pray we do not get here.
It is a rush to get to ‘herd immunity’, this will be based on those who have already been exposed to the virus and those receiving vaccinations. The targeted timeline is expected by May. One thing that could help speed-up the vaccination process, – Moderna has filed for approval to pack 15 doses into each of their vials instead of 10.
There are new Fed voting members that will rotate in for 2021:
2020 Voting Fed Members Leaving:
-Cleveland Fed President Mester
-Minneapolis Fed President Kashkari
-Dallas Fed President Kaplan
-Philly Fed President Harker
2021 New Voting Fed Members:
-San Fran Fed President Daly
-Chicago Fed President Evans
-Atlanta Fed President Bostic
-Richmond Fed President Barkin
-Fed Governor Waller
It’s Jobs Week. The January ADP and BLS Employment Reports will be released on Wednesday and Friday respectively. After negative prints for December, the market is expecting very minimal gains in January. The unemployment rate is expected to increase from 6.7% to 6.8%.
Mortgage Bonds are trading in a range between support at 103.053 and a dual overhead ceiling at the 25 and 100-day Moving Averages. The 10-year is trading at 1.08%, just above the important pivot point of 1.07%. We can start the week carefully floating. If Stocks give back some of their earlier gains Bonds could take another run at resistance.