The Delta coronavirus variant continues to surge and fear it will hinder economic growth the second half of 2021 is creeping into the markets.  The CDC suggested that the Delta variant causes more severe illness than the original coronavirus and spreads as easy as chickenpox.  The CDC will publish data today that supports their guidance change that fully vaccinated people should wear masks indoor.

Texas Republican Dan Crenshaw went on Fox news Thursday and said CDC data is from a non-reviewed study from India.  He told Fox viewers the CDC and FDA have conflicting messages and he trusts the FDA.  Saying mask wearing is a Democrat tactic to scare people, Crenshaw implored Fox viewers to resist wearing masks.

The US GDP grew at an annual rate of 6.5%, well below analyst expectations of 8.4% and a sign the Fed will continue supporting the economy.

Amazon (AMZN) is down over 6% premarket after a rare revenue miss for the first quarter after founder Jeff Bezos stepped down as CEO.  Amazon beat earnings, up 46% over a year ago, but revenue came in at $113.1 billion versus $115.2 billion expected.  Revenue was up 27% year over year.

Robinhood (HOOD) finished its first day of trading down 8% and continues to trade lower premarket.  The company raised about $2.1 billion in it’s IPO, selling 55 million shares @ $38.

Earnings include PG, XOM, CVX, ABBV, CAT and CL.

The economic calendar focus is Core PCE @ 8:00am ET, Chicago PMI @ 9:45am ET, and Consumer Sentiment @ 10:00am ET.  The calendar also includes Employment Cost Index, Personal Income & Outlays @ 8:30am ET.

Volatility remains steady as the S&P 500 continues to work near its all-time highs.

Size bias is short into the US session open on the heaviest Globex volume we’ve seen in a long while.

Fed Chair Jerome Powell reinforced Fed’s James Bullard’s remarks that trade wars with China, Mexico, and the EU put a dark cloud over the US economy.  Powell said yesterday “as always, we will act as appropriate to sustain the expansion, with a strong labor market and inflation near our symmetric 2% objective.”  Fedwatch now places the probability of a interest rate decrease at 53% for July.

Presidential candidate Sen. Bernie Sanders will be crashing Walmart’s annual meeting at the invitation of WalMart workers.  He expected to push Walmart to raise wages higher than the $11/hour minimum wage.

Earnings today include FIVE, AEO, GILL, CPB, CLDR, SFIX, MDB, and UNFI.  The economic calendar is full with focus on the 8:15am EST ADP and 10:00am EST ISM Non-Manufacturing PMI.  Also on the calendar are Final Services PMI @ 9:45am EST, Oil @ 10:30am EST and Beige Book @ 2:00pm EST.

Fed speakers include Vice-Chair Clarida @ 9:45am EST and Bowman @ 10:00am EST.  Volatility is up again due to yesterday’s Fed induced rally.  US stocks had their largest move in over 5 months.  Size bias is long into the US session open.

US stock and futures markets are closed today for Good Friday.  We’ll resume posting on Monday, April 22.  Enjoy the long weekend!

Confusion and doubt are creeping into the markets over exactly what was accomplished during Trump and China’s Xi Jinping over Sat dinner’s trade talks.  The WH economic advisor Larry Kudlow tried to detail specifics from the meeting but only conflicted with trade talk information released by the Chinese.  The start date of the 90-day truce is in question as Kudlow says it’s Dec 1 and China said it was Jan 1.  With no agreement written down and signed, markets are a little nervous.  Meanwhile yields between the 3 and 5-year note have inverted for the first time in over 10 years suggesting that the US economy is slowing.  Nothing of significance on today’s US economic calendar.  The Fed’s Williams holds a press conference @ 10:00am EST.  Earnings include TOL, DG, AZO, MRVL, and HPE.  Volatility remains elevated, however could shrink into today’s US close as US stock markets will be closed National Day of Mourning for former US President George H.W. Bush.  Size bias is short on lighter Globex volume into the US session open.