What’s in Today’s Report:
- Technical Update (Important Support and Resistance)
- Jobs Report Preview (It’s Going to be Ugly)
Futures are moderately lower as markets digest Thursday’s rally ahead of today’s jobs report.
Economically, global service PMIs were worse than expected and the drops were historic. The EU service PMI plunged to 26.4 vs. (E) 28.4, down from 52.6 in Feb.
The Chinese service PMI rebounded strongly in March, rising to 43.0 from 26.5, confirming that their economy is seeing a strong bounce back in activity. This is mildly encouraging because the Chinese data implies that once the coronavirus pandemic has passed (against sooner than later) we should see a strong bounce back in the economy.
Today focus will be on the jobs report, and the estimate are as follows: Jobs: -150K, UE: 3.9%, Wages: 0.2%. But, the “worst case” estimate we saw was for -1.25 million jobs, so don’t be shocked if the number is much worse than the estimate. Also, we get the March ISM Non-Manufacturing PMI (E: 43.0). If that can beat that low estimate, that will be a small moral victory.