What’s in Today’s Report:
- What Does the Fed Rate Cut Mean for Markets?
- Which Market Sectors Benefit from the Rate Cut?
- FOMC Decision Takeaways
Futures are sharply higher as Biden, the more business and market friendly Democratic candidate, had a strong showing on “Super Tuesday” while the coronavirus outbreak fueled further optimism for more stimulus globally.
COVID-19 cases have topped 93K with a death toll over 3,100.
HPE was the latest company to cut 2020 guidance due to the coronavirus while the Caixin China Services PMI fell from 51.8 in January to a record low of 26.5 in February, also citing the virus outbreak as the primary reason for the weakness.
Looking into today’s session, there are two economic reports to watch: The ADP Employment Report will hit first (E: 170K), but then, more importantly, the ISM Non-Manufacturing Index (E: 55.1) is due out shortly after the open and it could be a major catalyst for further gains (if it is good) or more volatility (if is badly misses expectations).
Lastly, the St. Louis Fed’s Bullard will speak twice today (11:00 a.m., 6:30 p.m. ET) and any indication on the Fed’s future policy plans could also have a significant influence on markets with the coronavirus outbreak still being closely watched by investors.