S&P 500 Technical Update (Chart)

What’s in Today’s Report:

  • Market Multiple Table Chart

Futures are moderately lower on digestion of Wednesday’s rally following a generally quiet night.

Economic data was sparse as Japanese Machine Orders was the only notable report, as it beat estimates (6.3% vs. (E) 2.0%).

On the stimulus front, Senate Republicans will pass a $500 bln stimulus bill today but it won’t pass the House, and hopes for a stimulus deal before the election (Nov 3rd) are fading, and if that’s the case we should expect that to weigh on stocks in the coming weeks, especially if economic data starts to roll over.

Today we get the ECB Decision at 7:45 a.m. ET and the expectation is for no change to rates or QE.  But, ECB President Lagarde could be dovish in her comments starting at 8:30 ET, and if so that could boost the dollar and be a mild headwind on stocks today.

Away from the ECB, the key report today is Jobless Claims (E: 830K) and markets will want to no major back tracking on the recent drop in claims (so no numbers close to 1MM).  Finally, we also get PPI (E: 0.3%), which was “hot” last month.  But, with the Fed max dovish, it’s unlikely even a high PPI would cause much volatility in stocks.