Tuesday August 11, 2020 Trading Desk: (312) 236-8907
TODAY’S GAME PLAN: from the trading desk, this is not research
DATA/HEADLINES: 8:30ET Producer Price Index; 11:00ET Fed’s Barkin speaks; 12:00 Fed’s Daly speaks; 1:00ET 3 Year Note Auction
- Kamala Harris is favored as Biden’s VP pick / Alexandria Ocasio-Cortez will speak at the Democratic National Convention
- President Vladimir Putin said that Russia has registered an effective coronavirus vaccine that forms immunity, tested on his daughter. Russia claims to have already received 1 billion overseas requests for the vaccine
- Trump said that he is “very seriously” considering a capital gains tax cut / Biden has previously said he would double capital gains tax for higher earners.
- Stimulus talks remain stalled in Congress; McConnell’s insistence that any bill include legal liability protection for businesses, schools and colleges has become a major sticking point for Democrats.
- Seattle Police Chief Carmen Best announced her retirement Monday night, shortly after a city council vote to cut nearly $4 million from the department’s budget
Global equity markets are showing significant gains this morning, as investors welcome good news on the virus, possible tax cuts and surprisingly high German confidence. Equities advanced worldwide alongside U.S. index futures after President Trump said he is considering a tax cut on capital gains and Russia claimed to have given regulatory approval for the world’s first COVID-19 vaccine.
S&P 500 futures rose on vaccine hopes, signaling the benchmark was on course to approach its all-time closing high from February. Senate Majority Leader McConnell said Monday in a tweet that he hoped lawmakers will be finalizing the coronavirus aid bill sometime this week, adding to positive sentiment. Airlines and cruise-ship operators led advances in the U.S. premarket.
E-Mini S&P is up 0.5%, Nasdaq flat, Russell 2000 futures +1.1%, Dow futures +1%. SPX is less than 1% away from the all-time highs set in February and seems likely to give that a test today. The Fear and Greed Index is at 75, but has some room before a real extreme.