If oil continues to stay at these levels for a sustained period, it will bite into economic activity and renew inflationary pressure. That could put into question if and when the Fed will end its tightening cycle.
The retail sales are a real blow-out number. They show that economic activity is healthy but they will also ignite fears that the Fed will continue raising interest rates as it takes these numbers as a sign that the economy is still growing strongly.
I think this market now is basically trying to stabilize. The market will probably begin to focus on economic activity rebounding in the first quarter.
I think this market now is basically trying to stabilize, ... The market will probably begin to focus on economic activity rebounding in the first quarter.
When you have M&A (merger and acquisition) activity continuing, it's a sign of stronger economic activity ahead. The market probably will focus on the economic data; I suspect the driving factor of the day could be the ISM index.