Futures fall after President Trump issues dire warning on virus
S&P futures vs fair value: -89.50. Nasdaq futures vs fair value: -231.80. The S&P 500 futures are down 90 points and trade 3.5% below fair value after President Trump warned that the coronavirus could result in 100,000-240,000 U.S. deaths, even with the social distancing guidelines urged to limit its spread. The president added that Americans should brace for a 'very painful two weeks," as the data suggests that the daily number of deaths will peak in two weeks. The dire warning serves as reminder that the economy still must weather through tougher times and the scope of a recovery may not be the V-shaped some had hoped. Investors today will receive several economic reports for March, starting with the ADP Employment Change Report (Briefing.com consensus -175,000) at 8:15 a.m. ET, followed by the ISM Manufacturing Index for March (Briefing.com consensus 43.3) at 10:00 a.m. ET. Construction Spending for February (Briefing.com consensus 0.5%) will be released with the manufacturing report.  In addition, auto and truck sales for March will be released throughout the day. Earlier, the weekly MBA Mortgage Applications Index increased 15.3% following a 29.4% drop in the prior week. U.S. Treasuries trade mixed again with longer-dated tenors continuing to see the bulk of buying activity. The 2-yr yield is up four basis points to 0.24%, while the 10-yr yield is down eight basis points to 0.62%. The U.S. Dollar Index is up 0.7% to 99.69. WTI crude is down 0.2% to $20.44/bbl.  In U.S. Corporate news:Marriott (MAR 69.79, -5.02): -6.7% after disclosing a breach that impacted 5.2 million customers.Xerox (XRX 18.50, -0.44): -2.2% after withdrawing its offer to acquire HP Inc (HPQ 16.90, -0.46, -2.7%). Reviewing overnight developments:Equity indices in the Asia-Pacific region ended the midweek session on a mostly lower note. Japan's Nikkei: -4.5%, Hong Kong's Hang Seng: -2.2%, China's Shanghai Composite: -0.6%, India's Sensex: -4.1%, South Korea's Kospi: -3.9%, Australia's ASX All Ordinaries: +3.5%.In economic data:China's March Manufacturing PMI 50.1 (expected 45.5; last 40.3)Japan's Q1 Tankan Large Manufacturers Index -8 (expected -10; last 5) and Q1 Large Non-Manufacturers Index 8 (expected 6; last 20). March Manufacturing PMI 44.8, as expected (last 47.8)South Korea's March Nikkei Manufacturing PMI 44.2 (last 48.7). March trade surplus $5.04 bln (last surplus of $3.98 bln). March Imports -0.3% yr/yr (expected 1.3%; last 1.5%) and Exports -0.2% yr/yr (expected 1.5%; last 4.3%)Australia's February Building Approvals 19.9% m/m (expected 4.5%; last -15.3%) and Private House Approvals -0.8% m/m (last 0.3%). March AIG Manufacturing Index 53.7 (last 44.3) and March Manufacturing PMI 49.7 (expected 50.1; last 50.2).In news:The Bank of Japan reduced its daily purchases of JGBs with maturities between 3- and 5-yrs while Prime Minister, Shinzo Abe, said that he wants larger stimulus than what was deployed after the fall of Lehman Brothers. China's State Council pledged continued support for small and medium enterprises and an increase to local government bond issuance.Major European indices trade in negative territory. STOXX Europe 600: -3.4%, Germany's DAX: -3.8%, U.K.'s FTSE 100: -3.6%, France's CAC 40: -4.2%, Italy's FTSE MIB: -2.2%, Spain's IBEX 35: -2.3%.In economic data:Eurozone's February Unemployment Rate 7.3% (expected 7.4%; last 7.4%) and March Manufacturing PMI 44.5 (expected 44.7; last 44.8)Germany's February Retail Sales 1.2% m/m (expected 0.1%; last 1.0%); 6.4% yr/yr (expected 1.5%; last 2.1%). March Manufacturing PMI 45.4 (expected 45.5; last 45.7)U.K.'s March Manufacturing PMI 47.8 (expected 47.0; last 51.7)France's March Manufacturing PMI 43.2 (expected 42.9; last 49.8)Italy's March Manufacturing PMI 40.3 (expected 40.5; last 48.7)Spain's March Manufacturing PMI 45.7 (expected 44.0; last 50.4)Swiss March procure.ch PMI 43.7 (expected 40.0; last 49.5)In news:The European Banking Authority called on all banks to limit dividends and share buybacks while the Bank of England and Prudential Regulation Authority issued similar guidelines that also call for a suspension of buybacks and bonuses to senior staff.Italy's Prime Minister, Giuseppe Conte, once again called for the issuance of euro bonds despite opposition from Austria and Germany.