Thursday August 27, 2020 Trading Desk: (312) 236-8907
TODAY’S GAME PLAN: from the trading desk, this is not research
DATA/HEADLINES: 8:30ET Weekly Jobless Claims, GDP revision; 9:10ET Virtual Jackson Hole, Fed’s Powell speaks; 10:00ET Pending Home Sales; 12:30ET Fed’s Barkin speaks
Fed’s Powell headlines this year’s virtual Jackson Hole economic policy symposium, with Bank of England Governor Andrew Bailey and European Central Bank chief economist Philip Lane also speaking. The consensus estimate is for weekly jobless claims to come in at 1 million, with continuing claims continuing to move lower to 14.4 million.
- Weekly COVID-19 cases in England decline for first time since July
- Coronavirus cases fell by 15% in the US this week – link
- 12 people from Hong Kong arrested while sailing to Taiwan to apply for political asylum
- Wisconsin investigators say knife found at scene of police shooting of Jacob Blake
- Night 4 Of Kenosha Protests Mostly Peaceful As City Calls In Reinforcements
A global rally that drove equity gauges to records stalled as investors wait for Powell’s speech later this morning and concerns remain over China and the US. A bevy of central bankers and economists speak at the Jackson Hole economic symposium in a few hours via webcast entirely viewable by the public for the first time. Traders are also continuing to monitor news of tensions with China, the strengthening of Hurricane Laura, and medical developments for the coronavirus. Sino-U.S. tensions ratcheted higher over the South China Sea as Washington blacklisted 24 Chinese companies and targeted individuals it said were part of construction and military actions in the disputed waterway, while Beijing test-fired missiles into the area yesterday.
EQUITIES: Dell Technologies, HP, Dollar General and Tiffany & Co are among the companies reporting earnings
U.S. equity futures fell after a surge in technology shares on Wednesday pushed the S&P 500 index and the Nasdaq Composite to fresh highs for a fourth straight session. U.S. stock index futures dipped overnight as tensions between Washington and Beijing dampened the mood ahead of an address by Federal Reserve Chair Jerome Powell, in which he is expected to make a case for low interest rates and higher inflation. Powell’s virtual speech to the annual Jackson Hole symposium this morning will be closely watched by investors as he is expected to outline the central bank’s long-awaited framework review. Among early movers, NetApp jumped 10% in premarket trading after it posted better-than-expected quarterly results, powered by demand for its cloud services. Abbott Laboratories gained 9% after the medical device maker won US marketing authorization for a $5 rapid COVID-19 portable antigen test.
E-Mini S&P is down 0.25%, Nasdaq -0.25%, Russell 2000 futures -0.25%, Dow futures -0.25%. ES has 3449 area as initial support today.