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Day Ahead: Top 3 Things to Watch for March 11

Published 03/10/2020, 06:07 PM
Updated 03/10/2020, 06:13 PM
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By Kim Khan 

Investing.com - The stock market bounced back today on anticipation that the White House could get a stimulus package out sooner rather than later.

But the wild cards still exist as to whether Congress will go along with President Donald Trump’s push for a payroll tax reduction and whether paid sick leave will also come about.

Looking to Wednesday the results of more Democratic primaries could affect the markets as they did last week, while there will be inflation data on which to trade if the market can calm down and oil inventories numbers as well.

Here are three things that could move the markets tomorrow.

1. Another Biden Bounce?

If anyone remembers last week’s market moves, the major indexes surged following former Vice President Joe Biden’s strong showing in the Super Tuesday Democratic Primaries.

Biden is seen as much more friendly to Wall Street than rival Sen. Bernie Sanders, whose main platform is Medicare for all, which would tank health insurance stocks.

Tonight, voters in six states go to the polls: Idaho, Michigan, Mississippi, Missouri, North Dakota and Washington.

Of those states, Michigan will be the most closely watched. Trump won Michigan in 2016 by the narrowest margin in the state’s history, giving 16 electoral votes in an important swing state to the current president.

2. Oil Inventories Seen Rising With Crude in Turmoil

Oil prices managed to rebound today, following Wall Street’s rise.

But keeping the rise somewhat in check was the promise of more Saudi crude hitting the market.

Amin Nasser, CEO of Saudi Aramco (SE:2222), said the oil giant would increase supply to 12.3 million barrels per day (bpd) in April for customers inside the kingdom and abroad. That's 300,000 bpd above its maximum production capacity.

Tomorrow the Energy Information Administration will issue its weekly report on oil inventories.

U.S. crude stockpiles are expected to have risen by 2.27 million barrels for the week ended March 6, according to forecasts compiled by Investing.com.

3. Retail Inflation on Tap

On the economic calendar, the latest data on retail inflation will come before the bell.

The Labor Department issue the consumer price index (CPI) for February at 8:30 AM ET (12:30 GMT).

Economists expect that the CPI rose 0.2% last month, compared with a 0.1% rise in January, according to forecasts compiled by Investing.com.

The core CPI, which excludes volatile food and energy prices, is expected to have risen 0.2% in February.

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