Tomorrow's Market Movers
Many of the market movements tomorrow will revolve around two things:
1) Pending Home Sales for Feb 08 -- released at 10:00 EST
2) FOMC Minutes (Fed Minutes) for their March 18th Meeting -- released at 14:00 EST
PENDING HOME SALES:
Current consensus for Feb home sales is negative. Contracts to Purchase Homes Probably Fell. So the real question becomes: How bad will the Feb figures be?
If the data shows greater than a 1% drop (which has already been factored into the markets), it'll probably be quite negative for the major indexes. Otherwise, it may be used as a positive spin for the "rebound" and a market positive for the day.
Analysts feel the Fed may be close to an end with rate cuts. (Note: They may state such in their minutes, but I believe -- only until the next major crisis). Anyway, if that is the case and FOMC minutes indicate so, we may see a dollar rebound and commodities selloff a bit, but the stock markets like cheap money and will also likely decline on this news.
Additionally, I think the FOMC minutes will be quite pessimistic w/regard to US economic activity.
- Consumers are pulling back on spending
- The US job market is contracting
- Consumer credit is declining
- Banking system is still stressed
- Overall: GDP is contracting (not good)
Bottom Line: I believe tomorrow, even with PPT interference/manipulation, will see a negative ending/close for the major indexes.