This morning’s focus will be oil prices and expectations for more stimulus to come as lawmakers mull a $500 billion stimulus package.
First, crude oil: the May contract that expires tomorrow traded below 14 this morning in a clear reflection of supply concerns and demand destruction. Last week, the EIA reported an inventory build of 19 million barrels and storage is nearing capacity as inventories climb, which is also putting pressure on prices.
As for stimulus, Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi this weekend spoke of how they will be working to get another $500 billion approved by lawmakers to help support the small businesses and workers hit hardest by the pandemic, while President Trump said he thinks we could see something early this week. IMF Chief Kristalina Georgieva over the weekend said we could be in for a severe recession in 2020 and spoke of how this is a period of "daunting challenges" for policymakers.
This week in terms of economic data, while today starts off slow with the Chicago Fed National Activity Index at 8:30am ET, we also have some housing numbers, Durable Goods and the PMI Composite Flash to keep an eye on in addition to companies reporting quarterly results. Stay tuned to the TD Ameritrade Network for coverage of all the breaking news and market reaction to it.