April 1, 2020

Markets:

Stock-index futures pointed to a lower start for stocks Wednesday after the U.S. market logged its worst quarterly performance since 2008, as President Donald Trump warned that a “very, very painful” two weeks lies ahead as the COVID-19 pandemic continues.

Stocks ended lower on Tuesday, capping a quarter that saw stocks tumble from February records into a bear market at record speed. The Dow DJIA, -1.83% logged a 23.2% quarterly fall, its biggest first-quarter drop on record and biggest quarterly decline since 1987. The S&P 500 SPX, -1.60% fell 20% for its biggest quarterly selloff since the final three months of 2008. The Nasdaq Composite COMP, -0.95% fell 14.2% for the quarter.

The Institute for Supply Management’s March manufacturing index due at 10 a.m. Eastern is expected to fall to 44% from 50.1% in February. A reading below 50 indicates a contraction in activity.

Meanwhile, expectations are growing for another round of fiscal stimulus following the passage last week of a $2 trillion relief package.

Portfolio:

We enter today’s session holding only two positions but fully expect to begin to release a handful of trades in the coming week based on our queue. Current price action is finally developing strong opportunity again for us to take advantage of. Get ready folks!