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The week ahead #2

Last weeks economic did not disappoint. The two big pieces of information last week were the 700,000 thousand jobs cut from non-farm payrolls and the 6.6 million jobless claims. Both of these numbers were previously in the realm of impossibility, yet have become a reality. This week’s data will be increasingly more dire than last weeks. As long as the economy remains in a Coronavirus induced coma, these numbers will continue to be outside anyone’s imagination.

Monday: Check updates on Coronavirus

Any news that pertains to the Coronavirus pandemic is inherently important in this time. This news has a direct impact on both the economy and consumer sentiment. Also a major contingency of investors is that the economy will magically resume after quarantine ends. This is simply fiction. People will not feel safe to return to their normal routines until a vaccine is found and widely deployed. Regardless of how deadly this virus may actually be, panic breeds panic, and people will not stop panicking until effective treatment or a vaccine is found.

Tuesday: Jobs Openings

The data that will be reported on Tuesday covers the period ending in February. Any data points coming out before the massive shutdowns in March in worthless, however, also reminiscent of the good ol’ times when everyone had money.

Wednesday: FOMC minutes

Reading what the Federal Reserve discussed will be extremely interesting. What they discussed is pertinent in understanding how the Fed will maneuver in this environment.

Thursday: Weekly jobless claims

The expectation is this number will reach the highest ever in American history. It will probably exceed 10 million up from about 6.6 million last week.

Friday: Consumer price index

Looking at the CPI is useful in understanding how many times money is still circulating, or velocity. Following the CPI in the coming months will be critical in measuring the effects of the monetary and fiscal stimulus.

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