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What the Fed Decision Means for Markets

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What’s in Today’s Report:

  • What the Fed Decision Means for Markets
  • EIA Takeaways and Oil Market Update

Futures are moderately higher thanks to strong earnings from AAPL and FB combined with the market digesting the Fed’s still dovish message from yesterday. Economic data was sparse overnight as German Unemployment met expectations at 6.0% and isn’t moving markets.

Today focus will be on important earnings and economic data.  Economically, the key report will be weekly Jobless Claims (E: 558K) and markets will want to see that number keep most of the gains of the past two weeks.  We also get Advanced Q1 GDP (E: 6.5%) and that will generate a lot of headlines, but remember it’s an “old” number by now (it measures activity from Jan-Mar).  Pending Home Sales (E: 3.8%) will also be released and there are two Fed speakers: Quarles (11:00 a.m. ET) and Williams (2:00 p.m. ET), but they shouldn’t move markets.

Regarding earnings, there are several important reports today including AMZN ($9.75) after the close.  Other reports we’re watching today include:  MCD ($1.81), RCL ($-4.54), MA ($1.55), CAT ($1.93), and TWTR ($0.14).

What the Fed Decision Means for Markets

/in , /by

What’s in Today’s Report:

  • What the FOMC Decision Means for Markets
  • FOMC Takeaways
  • EIA Data Analysis and Oil Update

Stock futures are under pressure this morning (Nasdaq futures down over 1%) as the 10 year Treasury yield approached a new 52-week high of 1.75% overnight amid further digestion of yesterday’s Fed decision and lingering inflation concerns.

There were no notable economic reports or market moving headlines overnight.

Today, there are two important economic releases to watch ahead of the bell: Jobless Claims (E: 700K) and the Philadelphia Fed Manufacturing Index (E: 24.0) as investors will be looking for continued improvement in these two current month data points.

There are no Fed officials speaking today however the Treasury will hold a 10-Yr TIPS auction at 1:00 p.m. ET and if the outcome triggers a further spike in the 10 year yield, expect selling pressure on tech shares to weigh on the broader equity markets as the Fed decision continues to be digested.