Monday August 17, 2020 Trading Desk: (312) 236-8907
TODAY’S GAME PLAN: from the trading desk, this is not research
DATA/HEADLINES: 8:30ET Empire State Index; 10:00 NAHB Home Builders Index; 12:00ET Fed’s Bostic speaks / The minutes from the Fed’s last policy meeting are due on Wednesday
The Democratic National Convention starts tonight / U.S. AUG. NAHB HOMEBUILDER INDEX RISES TO 78, MATCHING RECORD
TODAY’S HIGHLIGHTS:
- Pelosi calls back House members this week to work on legislation to shore up the US Postal Service
- NBA playoffs start today
- Chinese Cabinet Will Not Resort To Flood Like Stimulus; Will Keep Liquidity Reasonably Ample – State Media
- Trump officially ordered the Chinese owner of the popular music video app TikTok to sell its U.S. assets, citing national security
- A new strain of coronavirus was found by researchers in Malaysia whose mutation could make it more infectious; WHO says there’s no evidence the strain leads to a more severe disease.
- TikTok is forming a partnership with UnitedMasters, a music distribution company
- US Commerce Department On Monday To Tighten Restrictions On Huawei Access To US Technology, Semiconductors – RTRS. WILL ADD ANOTHER 38 HUAWEI AFFILIATES IN 21 COUNTRIES TO U.S. ECONOMIC BLACKLIST
Overall trading in global markets was subdued on Monday as traders weighed the prospect of European quarantine measures against continued government support. Tensions continue to mount between the U.S. and China as senior officials from Washington and Beijing late last week postponed trade talks that had been set for this past weekend. Data releases across Asia on Monday painted a bleak picture with Japan recording its biggest economic contraction on record in the second quarter. Coronavirus cases, meanwhile, continued to surge globally, especially in the United States and India, casting a shadow over hopes of an economic recovery.
EQUITIES:
Futures contracts on U.S. equity indexes rise after fluctuating between gains and losses as investors weighed global mood amid renewed frictions between U.S. and China and travel restrictions across Europe. Shares of Covid-19 vaccine contender CureVac continued to rally, surging more than 50% in U.S. pre-market trading. Goldman Sachs expects a virus vaccine by the end of the year and increased its price target for the S&P 500 SPX , boosting its year-end target by 20% from 3000 to 3600.
E-Mini S&P is up 0.3%, Nasdaq +0.6%, Russell 2000 futures +0.25%, Dow futures +0.25%. SPX will have 3378 area as initial key to start the day as it continues to hold just below the all-time highs set in February (3393.52).
