What’s in Today’s Report:
- What To Make Of Yesterday’s Collapse
- Yield Curve Update (Steepening But for the Wrong Reasons)
Futures are down sharply but well off the overnight lows as markets digest yesterday’s collapse in stocks.
Coronavirus continues to spread (new cases in Nigeria and New Zealand) but China announced the fewest number of new cases since January 23rd, so there is progress occurring.
Economically, Japanese Retail Sales (-0.4% vs. (E) –1.0%) and Industrial Production beat estimates.
Coronavirus headlines will continue to dominate trading and today will be another volatile day (Friday’s in corrections always are), but outside of coronavirus markets will be focused on the Core PCE Price Index (E: 1.8%), Consumer Sentiment (E: 100.9) and one Fed speaker Bullard (9:15 a.m. ET).