Friday August 21, 2020 Trading Desk: (312) 236-8907
TODAY’S GAME PLAN: from the trading desk, this is not research
DATA/HEADLINES: 9:45ET Markit Manufacturing PMI; 10:00ET Existing Home Sales
There are no Fed speakers on the docket
- The EU’s chief Brexit negotiator says a trade deal with the U.K. looks unlikely at this stage
- Coronavirus cases have been reported at 41 schools in Berlin not even two weeks after reopening
- Joe Biden challenged Americans to embrace the “path of hope and light”
- U.S. postmaster general to face tough questioning in Senate hearing today
Global stock markets enjoyed cautious gains, taking their cue from Wall Street tech shares, but tepid economic data and lofty valuations reined in the advances in the wake of huge rally that has wiped out coronavirus losses. Global shares were moderately higher as vaccine news buoyed investor sentiment, overshadowing economic data that showed Europe’s recovery faltering. Pfizer and BioNTech said the Covid-19 vaccine they are jointly developing is on track to be submitted for regulatory review as early as October.
U.S. stock-index futures were little changed as investors focused on news about a potential coronavirus vaccine, but are sliding heading into the US market open. Infections in southern states are slowing and death rates should start to fall next week, according to the head of the Centers for Disease Control and Prevention.
E-Mini S&P is down 0.55%, Nasdaq -0.45%, Russell 2000 futures -0.75%, Dow futures -0.5%. SPX held initial support yesterday at the .382 retrace of the month at 3355. A break of this level today would likely see some downside momentum to 3328*, 3309