What’s in Today’s Report:
- Market Valuation Update: Cheap, Fairly Valued, or Still Expensive?
- Oil Update (Weekly Inventory Data)
Futures are seeing a moderate rally/bounce as the Fed acted, again, and oil bounced on comments from Trump.
The Fed said it will exclude Treasury holdings and deposits from certain leverage ratios (that essentially allows banks to lend more money which should help the economy).
On oil, Trump said he expected a Russia/Saudi oil deal within “days” but gave no specifics as to how that might happen (although it would be a positive if it does).
Today the key report is Jobless Claims (E: 3.350M), although we also get Motor Vehicle Sales (E: 14.3M) and International Trade (E: -$39.5B).
But, in reality, the real driver of markets right now is coronavirus headlines. They were more positive in tone last week, but have turned more negative this week and that’s why stocks dropped so hard yesterday. Any good news on 1) A pharma solution (vaccine/antibody treatment/trials) or 2) Slowing of the spread will help make this early bounce more sustainable.