Busy Calendar Today Starting with Q1 GDP which will show the First negative print in 10 years and as Bloomberg headlines describes this will be the Storm before the Storm. Consumer spending to be negative and PCE, feds favored Inflation gauge is expected to move higher. Market reaction should be close to nil as Markets have priced in a lot of this ugliness, plus Q2 GDP is the Timeframe most people want to see.
Big Tech Earnings after the close Tesla, MSFT, Facebook, Qualcomm. Alphabet reported yesterday and Stock is Higher +6% or so. Yesterday Starbucks reported 50% drop china’s Same store sales. Boeing is targeting a 10% reduction in workforce and cutting commercial Airplane production(bbg). Ford reported a $5 billion loss (BBG)This morning, Master card, general Dynamics and Yum have reported. Per WSJ More companies so far have suspended or canceled dividends this year then in previous 10 years combined.” Companies doing all they can to save money.
The Fed meets today and will hold a Virtual press conference at 1:30, No change in rates expected but it is Possible the Fed adjusts its IOER higher. Fed statement unlikely to have many changes, no updated Economic projections as normally would be the case on a Quarterly meeting. Questions during the press Conference will focus on What tools to Fed have left, What about Negative rates, pace of QE purchases and Yield curve control.
President trump Will sign an Executive order to keep slaughterhouse and packer plants opens during the crisis, these facilities have been hit hard by the virus due to the close confines of the workers. Food supply chain is experiencing many hiccups thus causing retail prices to move near all-time highs. Workers and Unions representing these workers are none too happy, who can blame them with their life on the line. Hogs were strong double limit bid yesterday but finished little changed after this hit wires
Tonight 8:00 China PMI to be released
Lots of green everywhere Except Italian Bonds as Fitch downgraded company to BBB. June Crude on the Bid +19% Brent +4.5%, Dollar slightly Lower