Day Ahead: Top 3 Things to Watch for March 19

By Kim Khan 

Investing.com - The U.S. stock market tumbled and, although closing well off the lows, it was no surprise for anyone watching the activity recently.

Wall Street is stuck in a yo-yo or unprecedented scale: a thousand Dow points here, a thousand Dow points there.

The difference between today and Tuesday is that the U.S. government focused on economic help and focused on medical health today. The stock market needs numbers, however callous that may seem.

Here are three things that could move the market tomorrow.

1. Take Two on Federal Help

The Senate passed the first of what Wall Street hopes is more stimulus bills, giving the OK to an $8.3 billion initial package passed by the House.

But investors are looking to the second move from the federal government.

The administration is looking at a $1 trillion package to soften the economic impact from Covid-19 that includes direct payment to taxpayers, federal tax relief and money for the airline industry and other affected sectors of the economy.

Progress and details on this could help the yo-yo return to the hands of the bulls.

2. {10|Dash}} for Cash to Keep Dollar Rising?

The dollar surged to a three-year high on Wednesday, on growing investor demand for cash amid fears of a liquidity squeeze as worries mount about a looming recession from the impact of the coronavirus pandemic.

The demand for the greenback comes as investors worry about potential dollar-funding issues amid the “most unexpected recession in modern times,” suggested Paul Meggyesi, head of FX strategy at JPMorgan (NYSE:JPM) in London.

But efforts from global central banks to provide dollar liquidity through measures such as swap lines will likely ease concerns.

The US Dollar Index, which measures the greenback against a trade-weighted basket of six major currencies, rose to three-year high of 101.74 on Wednesday before pairing some losses.

A rally for the dollar on Thursday could see it re-test the April 2017 highs of 101.34, before making a move for the 102 handle.

3. Philly Fed Gives Some March Data

March economic data is starting to arrive, which will give investors a better idea of how the novel coronavirus pandemic is hitting the economy.

The Philadelphia Federal Reserve will report its monthly measure of manufacturing at 8:30 AM ET (12:30 GMT).

The March Philly Fed index is expected to come in at a reading of 10, well down from 36.7 in February.

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