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Day Ahead: Top 3 Things to Watch for March 27

Published 03/26/2020, 05:52 PM
Updated 03/26/2020, 06:01 PM

By Kim Khan 

Investing.com - Wall Street certainly reacted strongly to the record-setting jobless claims today, but maybe not in the way most would’ve predicted.

What the market clearly cares about is what the government is willing to dole out to backstop the economy. The signals are whatever it takes (the White House’s Larry Kudlow said a total rescue package could be closer to $6 trillion).

But the first stimulus bill still has to become law.

Here are three things that could move markets tomorrow.

1. Final Hurdle for Stimulus Bill (or Is it Bull?)

It’s up to the House of Representatives to carry the ball into the endzone tomorrow with its vote on the $2 trillion fiscal stimulus package.

The House will convene at 9 AM ET (13:00 GMT).

There were hopes from House majority Democrats that the bill, once passed by the Senate, could be quickly passed in the House by unanimous consent. But after rumblings that some representatives could object and delay the process further, a voice vote, where the ayes and nays vote out loud in groups, is now planned.

House Speaker Nancy Pelosi said the bill could also be debated publicly.

"If somebody has a different point of view (about the bill), they can put it in the record," Pelosi said, referring to the Congressional Record.

What could throw a wrench in the works if there is a roll-call vote needed, which would require a quorum, with several lawmakers in quarantine and transportation limited.

2. Major Announcement as Trump Talks to Hannity?

Sometimes, like with postmarket earnings, what happens late today could affect trading tomorrow.

President Donald Trump will be interviewed by Fox’s Sean Hannity tonight and there could be some new White House policies revealed regarding the pandemic and the economy.

In his Fox town hall earlier this week Tuesday, Trump first floated the idea of reopening the U.S. economy on Easter. Rather than being an off-hand reply, that looks like what the president is shooting for now, based on later remarks.

Hannity is known to be a close adviser to the president, so a major policy announcement wouldn’t be out of the question. Trump told governors in a letter today that the federal government would rank counties on their risk of a Covid-19 outbreak, in a view to meeting the Easter deadline.

Hannity’s show airs on Fox News at 9 PM ET Thursday (01:00 GMT Friday).

3. Economic Data

Insofar as anyone can know right now how markets will react to economic data, there is more scheduled for tomorrow.

The University of Michigan will release its final measure of March consumer confidence at 10:00 AM ET (14:00 GMT).

The March consumer sentiment index is expected to drop to 90 from the preliminary measure of 95.9, according to economists’ forecasts compiled by Investing.com. The expectations measure is expected to remain at 85.3.

At 8:30 AM ET, the Bureau of Economic Analysis reports February personal spending and income numbers, which may be most of interest as the reference point before the jump off the cliff.

Spending is expected to have risen 0.2% for the month, while income is expected to have risen 0.4%.  

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