Cabrera Capital Daily Game Plan

Thursday April 1, 2021                                                        Trading
Desk: (312) 236-8907

TODAY’S GAME PLAN:  from
the trading desk, this is not research

DATA/HEADLINES  
8:30ET Weekly Jobless Claims; 9:45ET Markit Manufacturing PMI (final); 10:00ET ISM Manufacturing Index, Construction Spending; 1:00ET Fed’s Harker speaks / Jobs report on Friday could show the US economy added 647,000 jobs last month after February’s 379,000
rise

Good Friday starts the Easter weekend holiday in Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, Colombia, Croatia, Czech Republic,
Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Italy, Kenya, Luxembourg, Mexico,  NB Stock Connect, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, SB Stock Connect, Singapore,
Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Taiwan, United Kingdom,
United States

The plan Biden outlined Wednesday includes roughly $2 trillion in spending over eight years and would raise the corporate tax rate to 28% to
fund it. The proposal puts $621 billion into transportation infrastructure; $400 billion for the elderly and disabled; $300 billion into improving drinking-water, broadband access and upgrading electric grids; $300 billion into retrofitting affordable housing,
and upgrading schools; $580 billion in research and development and job training efforts. Biden will unveil the second part of his recovery package in a few weeks.

TODAY’S HIGHLIGHTS:   

• WH planning speech on part 2 of infrastructure bill week of 4/12 or 4/19
• Facebook bans Trump interview on Fox, “content posted in the voice of Pres Trump is not allowed”
• Pfizer's vaccine is more than 91% effective after six months, a new long-term study found

Global markets are broadly higher as investors look past worsening virus trends, such as lockdowns in France and Canada and focus on a US spending
boom and upbeat manufacturing data. A series of positive factory surveys released today reinforced market optimism. Factories across Europe and Asia ramped up production in March with manufacturing activity in Germany growing at the fastest pace on record. 
The US administration’s $2.25 trillion infrastructure plan outlined yesterday appeared to boost sentiment but the goal of funding it with higher corporate taxes and the prospect of resistance to the overall initiative in Congress tempered the response.

EQUITIES: 
  

US index futures rose as President Biden’s plan to rebuild infrastructure added to the growth outlook and signs of faster job creation fueled
optimism about the global recovery. The stimulus package will probably have to be broken up into smaller pieces to pass Congress with Democrats aiming for House passage by July. S&P 500 futures advanced before Friday’s nonfarm payrolls data that is likely
to show the quickest pace of hiring in five months. Nasdaq 100 futures increased more than 1%, with technology stocks gaining pre-market led by chipmakers. Western Digital jumped as much as 6% and Micron Technology gained 5% after a Dow Jones report the two
companies are individually exploring a potential deal for Japan’s Kioxia Holdings. Johnson & Johnson slipped 1.2% premarket after saying it had found a problem with a batch of the drug substance for its COVID-19 vaccine.  

E-mini S&P futures +0.25%, Nasdaq +0.9%, Russell 2000 futures +0.45%, Dow futures are flat.

The S&P Pharmaceuticals ETF (XPH) gained 1.15% yesterday and remains positive above its 200dma

European stocks kicked off the new quarter with gains, as optimism around strong factory activity data out of the euro zone lifted sentiment.
The Stoxx Europe 600 gained 0.5% with the technology sector leading gains, +1.4%. Data showed euro zone factory activity growth climbed at its fastest pace in the 24-year history of a leading business survey in March. Chip stocks including ASML, ASMI, and
Infineon Technologies all rose between 1% and 4% after US chipmaker Micron Technology issued an upbeat revenue forecast. Germany’s Delivery Hero jumped more than 3% after Dutch investment company Prosus NV raised its stake in the company. France’s blue-chip
CAC 40 lagged after the government announced a four week lockdown that begins this weekend. The German DAX climbed 0.6% to hit a record high, before paring some of its gain. FTSE 100 +0.45%. Healthcare and Energy are flat while Financial Services are up 1.25%.

Asian stocks climbed after US President Biden announced a $2.25 trillion infrastructure plan and amid several big news items in the semiconductor
industry. Tech stocks were the biggest boost to the MSCI Asia Pacific Index as chip giant TSMC announced plans to spend $100 billion to expand capacity. Japanese shares gained after the Tankan survey showed manufacturers have turned optimistic for the first
time since the fall of 2019. South Korean stocks climbed following a report that exports rose the most in more than two years on strong global demand. Hong Kong (+2%) was among regional gainers after data signaled a pick-up in manufacturing. Trading in more
than 50 Hong Kong-listed companies was suspended after a number of firms failed to report earnings ahead of the March 31 deadline. Vietnam recorded the biggest advance, up over 2%, hitting a record high. Indian shares rise more than 1% as capital infusion
by the government in state-run lenders lifted banks. China’s blue-chip CSI300 index rose 1.2%, led by consumer and healthcare shares, as investors shrugged off a survey showing weaker-than-expected factory activity growth.

FIXED INCOME: 
                                       

Longer-dated Treasury yields fell as investors weighed delivery challenges to Biden’s multitrillion $ stimulus plan and ahead of Friday’s employment
report. Treasuries are mixed with the curve flatter as long end holds most of its Asia-session gains. 10 to 30-year yields are lower by 2bp-4bp, flattening 2s10s by 2bp and 5s30s by 3bp. 10-year yield is around 1.72%.

METALS: 

Spot Gold is slightly 0.5% higher, after yesterday’s rally off the March 8th lows. Inflation data on Wednesday showed euro zone inflation accelerated
to 1.3% from 0.9% a month earlier. Investors view gold as a hedge against higher inflation that could follow stimulus measures but upside remains limited by rising yields and US dollar strength. SLV remains negative short term below its
200dma.

ENERGY:  

Oil climbed above $60 per barrel before paring gains ahead of a meeting of OPEC and its allies on extending production cuts. OPEC+ is holding
talks today on whether to prolong the production curbs that have been in place to support the oil price. Secretary-General Barkindo said that the market is "surrounded by uncertainties" ahead of the meeting which is widely expected to maintain output at current
levels for another month. Two main options are on the table for today's meeting: A return to monthly output hikes or rollover of current cuts, delegates said. The latter was widely expected until the last 24 hours or so, when rumblings of various outcomes
began surfacing.

CURRENCIES:  

The US dollar consolidated its 3.5% first-quarter gain as major currencies traded in tight ranges due to low volumes ahead of the long weekend.
The Australian dollar led losses, -0.3% after falling over 0.9%. The dollar’s share of global currency reserves dropped in the fourth quarter to around 59%, the lowest in 25 years, according to International Monetary Fund data.   

TECHNICAL LEVELS: 
(futures)    

Colors within the report:
Green
is always the 200 period (day, week). Red is always 21,
Blue = 50,
Brown =
100  *Stars have added importance

Equity movers in early trading, as of 7:35ET:

Advancers

• FTFT +21.9% (+$1.36); Future Fintech Reports Framework Pact to Buy Bitcoin Mining Farm
• UAVS +20% (+$1.25); AgEagle Gains After Reporting Yearly Revenue
• FNKO +15.8% (+$3.11); Funko Enters NFT Market with Majority Stake in TokenHead Developer
• QS +14.6% (+$6.55); QuantumScape Rises on Meeting Volkswagen Investment Milestone
• IDEX +13.7% (+$0.40); Ideanomics Jumps After 2020 EV Revenue Grew More Than 600%
• ABUS +12% (+$0.40)
• UTHR +10.6% (+$17.7); United Therapeutics: FDA OKs Pulmonary Hypertension Treatment
• CHPT +10.3% (+$2.74); EVs, Charging, Fuel Cell Stocks Rise on Biden Spending Plan
• AGFY +7.6% (+$0.95)
• BEEM +7.5% (+$3.27); EVs, Charging, Fuel Cell Stocks Rise on Biden Spending Plan
• RIDE +6.8% (+$0.80)
• TIGR +6.5% (+$1.15)
• SUNW +6.3% (+$0.93)
• VIOT +6.2% (+$0.56)
• WKHS +6.2% (+$0.85); Workhorse Group Social Media Volume Surges
• FCEL +6% (+$0.87)
• NNOX +6% (+$2.49)
• ABCL +6% (+$2.04)
• FUBO +5.8% (+$1.28); FuboTV Rises on Agreement to Carry Chicago Cubs Games
• CAMT +5.8% (+$1.73)

Decliners

• XSPA -14.1% (-$0.26); Meme Stock XpresSpa Slumps in Premarket Trading After Results
• CTIC -12.4% (-$0.36); CTI BioPharma Falls After Offering Shares
• XL -9.8% (-$0.88); XL Fleet Tumbles After Saying Chip Shortage Will Hit 1Q Revenue
• MVIS -9.5% (-$1.76); MicroVision Options, Social Media Surge
• TLS -9% (-$3.42); Telos Falls After Company, Holders Offer Shares
• BOMN -6.6% (-$1.96); Boston Omaha Falls 12% in Premarket After Stock Offering
• PRPH -5.3% (-$0.40)
• CGRO -4.5% (-$0.45)
• TKAT -4.1% (-$1.40)
• KMX -3.5% (-$4.66); CarMax 4Q Used Unit Sales In Comparable Stores Miss Estimates

David Wienke

Cabrera Capital Markets, LLC