Here's the big thing holding up the stock market, says Bank of America

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Investors want to see the economy land softly softly, and that is the main thing that will keep assets resilient, say BofA managers.

Retail sales and more debt-ceiling talks are the big spotlight for Tuesday, with stock futures indicating some wobbling ahead. There was also some disappointing China data that showed a slowing recovery.

So where are the worries in this teflon market? A bank credit crunch and a global recession are at the top, followed by high inflation that keeps central banks hawkish. For those contrarians out there, the trades would be bullish positions on real estate investment trusts, banks and value stocks, and going the opposite way of the crowd by shorting bonds, technology and growth.The markets Stock futures ES00 YM00 NQ00 are mostly flat ahead of retail sales data, with Treasury yields TMUBMUSD10Y TMUBMUSD02Y lower, oil prices CL.1 edging up and gold GC00 and silver SI00 weaker. The dollar DXY is flat.

On that theme, April retail sales are due at 8:30 a.m., industrial production at 9:15 a.m. and business inventories and a home-builder confidence index will come at 10 a.m.

 

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