What’s in Today’s Report:
- What Does the Fed Decision Mean for the Rally?
- The Key Takeaway from Yesterday’s Fed Decision (It Wasn’t Positive)
- EIA Analysis and Oil Update
Futures are sharply lower on follow through from the modest declines following yesterday’s FOMC decision.
If there’s a “reason” for the pullback it’s two-fold: First, digestion of Powell’s depressing outlook on future growth and second, a potential rebound in coronavirus cases.
Regarding coronavirus, the number of new cases is not spiking, but it is accelerating, as it’s done for over a week. Point being, there hasn’t been a recent spike in new cases over the past few days, the rise in cases has been occurring for over a week. But, the news cycle is turning again and renewed media focus on the virus is weighing on sentiment.
Looking forward to today, the key number is Jobless Claims (E: 1.500M) and again we need to see this number 1) Continue to decline and 2) Beat expectations, especially in light of Powell’s caution on the economy. Also, Continuing Claims needs to decline. If jobless claims disappoint markets, the selling today will likely intensify.