Good morning traders!
The S&P 500 ($SPY) is trading near yesterday’s close. Let’s get into it…
Yesterday, the Dow, S&P 500, and Nasdaq all declined, breaking a four-day winning streak. This was due to concerns over a possible economic slowdown, as new data showed job openings falling below 10 million for the first time in over two years. More job data is expected later in the week, including the ADP private payrolls reporting today and the March jobs report on Friday (when markets are closed for Good Friday).
The recent fall in the Institute for Supply Management’s manufacturing index supports the argument that the Fed’s rate hikes are having an impact. However, the high rates may continue, according to Cleveland Fed President Loretta Mester, who says that the fed funds rate should move above 5%, depending on inflation.
Given the recent pullback in the markets and concerns about a possible economic slowdown, a bearish outlook on the $SPY seems appropriate for today.
Wednesday Economic Events:
MBA Mortgage Applications 7:00am ET
ADP Employment Report 8:15am ET – High Volatility Expected
International Trade in Goods 8:30am ET
PMI Composite Final 9:45am ET
ISM Services Index 10:00am ET – High Volatility Expected
EIA Petroleum Report 10:30am ET – High Volatility Expected
Fed Speaker Scheduled:
No Fed Speakers Scheduled
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