Morning Market Report - March 16, 2020
Futures Trade Limit Down After Fed Cuts Rates a Full Point to Zero
S&P futures trading limit-down at 2,555 pre-market. After only trading for about 10 minutes last night after the 6 p.m. EST open, Futures have been stuck at limit down since then.
Dow futures are trading limit-up at 21,798.
SPY ETF indicating almost a 10% drop at the open.
Fed Cuts Rates to Zero - Launches $700B Quantitative Easing Program
In an emergency move Sunday, the Federal Reserve announced it is dropping its benchmark interest rate to zero and launching a new round of quantitative easing.
The new fed funds rate, used as a benchmark both for short-term lending for financial institutions and as a peg to many consumer rates, will now be targeted at 0% to 0.25% down from a previous target range of 1% to 1.25%.
The quantitative easing will take the form of $500 billion of Treasurys and $200 billion of agency-backed mortgage securities. The Fed said the purchases will begin Monday with a $40 billion installment.
The new fed funds rate, used as a benchmark both for short-term lending for financial institutions and as a peg to many consumer rates, will now be targeted at 0% to 0.25% down from a previous target range of 1% to 1.25%.
The quantitative easing will take the form of $500 billion of Treasurys and $200 billion of agency-backed mortgage securities. The Fed said the purchases will begin Monday with a $40 billion installment.
CDC recommends canceling events with 50 or more people for the next eight weeks throughout US
The Centers for Disease Control and Prevention is urging people across the U.S. to cancel or postpone events with 50 or more attendees for the next eight weeks to try to contain the fast-moving coronavirus pandemic, the agency said in revised guidance issued Sunday.
New York City and Los Angeles close bars, limit restaurants to takeout and delivery to stem coronavirus spread
Massachusetts Governor Baker also bans any public gatherings of more than 25 people (ordering restaurants to offer take-out food only).
Tom O' Brien's 4 p.m. Friday TigerTV Market Update
Gold Lower Ahead of Open
Oil
Notes and Bonds
F.A.N.G. stocks moving pre-market
VIX Chart
