Friday August 28, 2020 Trading Desk: (312) 236-8907
TODAY’S GAME PLAN: from the trading desk, this is not research
DATA/HEADLINES: 8:30ET Personal Income/Spending, Core Inflation, Advance Trade in Goods; 9:45ET Chicago PMI; 10:00ET Consumer Sentiment (final)
Bank of England Governor Andrew Bailey will speak at the Jackson Hole symposium just after 2pm today
TODAY’S HIGHLIGHTS:
- Japanese PM Abe announces his resignation due to health issues
- According to the RealClearPolitics average of national polls Trump trails Joe Biden by 7%
- Indonesia sees record new coronavirus cases
- Coca-Cola said it would reduce its global workforce as part of a company-wide restructuring
- JNJ to start mid-stage coronavirus vaccine trials in three European countries next week
EQUITIES:
U.S. equity index futures rose ahead of the second day of the Federal Reserve symposium, after chair Jerome Powell signaled the central bank will stay accommodative for longer as it shifts to a more tolerant approach on inflation. Yesterday there was some rotation into financials and other value shares following the US Federal Reserve’s new long-term policy strategy to allow higher inflation. In further proof that technology companies are booming in the pandemic, business software provider Workday Inc jumped 11.2% in premarket trading after raising its annual subscription forecast.
S&P 500 futures are set to rise for a seventh straight day +0.3%, Nasdaq +0.1%, Russell 2000 futures +0.5%, Dow futures +0.4%. Yesterday the Dow briefly turned positive on the year. The S&P 500 and the Nasdaq are on track for their fifth consecutive week of gains, but the Dow is still about 3.5% from its February all-time high.
