Friday August 7, 2020 Trading Desk: (312) 236-8907
TODAY’S GAME PLAN:from the trading desk, this is not research
DATA/HEADLINES: 8:30ET Nonfarm Payrolls, Unemployment Rate; CAD Employment; 10:00ET Wholesale Inventories; 3:00ET Consumer Credit / Fed’s Rosengren will testify to the Senate on the Federal Reserve’s Main Street Lending Program at 10am ET
Negotiations on a new coronavirus relief bill edged toward the brink of collapse after a meeting Thursday between White House officials and top congressional Democrats ended with each side accusing the other of being unwilling to compromise.
TODAY’S HIGHLIGHTS:
- PFIZER IN PACT WITH GILEAD TO MAKE REMDESIVIR FOR COVID
- President Trump banned US citizens from doing business with TikTok and WeChat apps or their owners
- Some in China Could Ditch AAPL if WeChat Banned from App Store – CNBC
- Germany plans to bring forward stimulus spending worth EU16b for a total of EU26b, Der Spiegel
- Facebook to allow employees to work from home until July 2021
- The deadly explosion at the Port of Beirut had approximately 10 percent of the explosive power of the atomic bomb dropped on the Japanese city of Hiroshima during World War II, UK specialists estimate
The rally in global shares was threatened after President Trump banned U.S. citizens from doing business with the TikTok and WeChat apps or their owners, a further deterioration of ties between the United States and China. Markets, however, appeared to be in a holding pattern ahead of U.S. jobs data. Meanwhile, concerns remain that US lawmakers will not be able to resolve differences over a new U.S. relief package. It is unclear if the two sides will meet again today.
EQUITIES:
U.S. stock-index futures fell, pointing to losses at the open, after President Trump’s latest attack on Chinese tech companies exacerbated trade tensions ahead of a key monthly jobs report. Contracts on all three major American benchmarks slipped, with those on the Nasdaq 100 snapping seven days of gains. The SPX is 1% below its closing high in February as investors head into the July nonfarm payrolls report. The data is crucial after a five-day rally that has looked past escalating U.S.-China tensions and instead toward the economic rebound, strong earnings and chances that Congress will approve a new stimulus plan. However there has been no progress on agreeing a new stimulus plan for the U.S. economy, with talks now on the brink of collapse
E-Mini S&P is down 0.5%, Nasdaq -0.45%, Russell 2000 futures -0.5%, Dow futures -0.55%.
