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Jobless claims due, CDC tells states to prepare for vaccine, and China moves to cut U.S. tech reliance.
Under 1 million?
Economists are forecasting that weekly claims for unemployment benefit will drop below 1 million for only the second time since mid-March when the number is published at 8:30 a.m. Eastern Time this morning. It’s the last look at the employment situation before tomorrow’s payrolls which is expected to show companies added 1.35 million positions in August. Yesterday’s ADP employment reading showed fewer than half the expected number of jobs were added.
The U.S. Centers for Disease Control and Prevention has told states to be ready to distribute a vaccine by Nov. 1. Despite the numerous shots being tested across the world, none of the experimental vaccines have yet finished the trials that would allow them to become widely available. Health officials said the selected date is consistent with earlier preparations to ensure the infrastructure is in place to distribute any treatment when it becomes available, and has nothing to do with the presidential election.
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Going it alone
China is planning a sweeping set of new policies to develop its semiconductor industry. The five-year plan is focused on supporting third-generation chips as Beijing becomes increasingly concerned by U.S. moves which could threaten supply of the crucial components. China also affirmed its right to approve tech deals, confirming that authorities will take a major role in any sale of TikTok’s U.S. operations. The Trump administration is set to make public its decisions on the scope and effective date of its bans on TikTok and WeChat later this month.
The rally that has driven stocks higher around the world is starting to developing some regionality this morning with not all global gauges moving in the same direction. Overnight the MSCI Asia Pacific Index was broadly unchanged while Japan’s Topix index closed 0.5% higher. In Europe, the Stoxx 600 Index had added 0.9% by 5:50 a.m., with French shares outperforming on the government’s announcement of a $118 billion stimulus plan. S&P 500 futures pointed to a lower open ahead of claims data, the 10-year Treasury yield was at 0.661% and gold slipped.
As well as claims, the July U.S. trade balance is published at 8:30 a.m. Markit services and composite PMI for August is at 9:45 a.m. with the ISM services index at 10:00 a.m. Chicago Fed President Charles Evans speaks later. Broadcom Inc., Campbell Soup Co. and Smith & Wesson Brands Inc. are among the companies reporting earnings.