Monday July 13, 2020
TODAY’S GAME PLAN: from the trading desk, this is not research
DATA/HEADLINES: 9:45ET Markit Services PMI (final); 10:00ET ISM Manufacturing Index; 11:30ET Fed’s Williams speaks on Libor; 1:00 ET Fed’s Kaplan speaks on the economy (webinar). 2:00ET Monthly Budget Statement
- China announced retaliatory sanctions against four U.S. officials including two senators
- The World Health Organization reported a record increase in global coronavirus cases on Sunday
- Florida reported a record increase of more than 15,000 new cases of COVID-19 in 24 hours on Sunday
- New York reported its first day without any coronavirus deaths since the pandemic hit
- Trump is warning TV networks that a Biden presidency would be boring and bad for their ratings
Global stocks rose ahead of earnings season, shrugging off new coronavirus outbreaks in some parts of the world. This week kicks off the U.S. and European quarterly earnings season and includes a summit over the European Union recovery fund and a European Central Bank policy meeting. Businesses around the world are reining in hiring and investment intentions as a result of the coronavirus disease 2019 (COVID-19) crisis, according to the latest IHS Markit Global Business Outlook survey. Focus now turns to whether the profit outlook will back up bullishness fueled by central bank and fiscal policy support.
EQUITIES: U.S. equity futures rose ahead of earnings from big banks that will act as a barometer of economic health. The U.S. earnings season kicks off this week with major Wall Street banks JPMorgan, Citigroup and Wells Fargo reporting on Tuesday. It is expected to be the second-biggest quarterly earnings drop since 1968, according to Refinitiv data. Earnings reports are expected to be dominated by surging provisions for loan losses and slumping consumer spending. Shares of PepsiCo rose in pre-market trading after the snack-maker reported stronger-than-expected second-quarter sales. Maxim Integrated Products Inc. surged 17% in the pre-market after rival Analog Devices Inc. agreed to acquire the semiconductor firm.
E-Mini S&P is UP 0.7%, Nasdaq +0.9%, RTY +1.1%, Dow futures +.09%. E-Mini S&P has 3209 area as initial key resistance, then 3233 area in SPX. The 50dma/200dma is just turning positive (Golden Cross).