What’s in Today’s Report:
- FOMC Takeaways – No Discernable Positive Catalysts for Stocks
- Why This Fed Isn’t Good at Communication
- Jobs Report Preview
- Oil Market Update
Futures are tentatively bouncing from yesterday’s late sell off as markets digest an imminent U.S./China trade deal, mixed economic data and the Fed meeting.
Multiple press reports yesterday implied a U.S./China trade deal could be completed next Friday, with the 10% tariffs on 250B in goods immediately reduced. This meets current market expectations and is already priced in, so there was no rally on the news.
Economic data met low expectations overnight as the EU Manufacturing PMI rose slightly to 47.9 vs. (E) 47.8, but that’s not moving markets.
Today we get a few notable economic reports via Jobless Claims (E: 215K), Productivity and Costs (E: 1.9%, 1.8%) and Factory Orders (E: 1.5%), but none of those should move markets. Instead, with no major events scheduled for today, traders will be focused on whether the S&P 500 can hold yesterday’s low (2923). If that support is fails than look for selling to accelerate.