Tuesday September 1, 2020 Trading Desk: (312) 236-8907
TODAY’S GAME PLAN: from the trading desk, this is not research
DATA/HEADLINES: 9:45ET HIS Markit Mfg PMI; 10:00ET ISM Mfg Index, Construction Spending; 1:00ET Brainard talks on monetary policy.
- China accuses U.S. using ‘national security’ as excuse to act against Chinese firms
- China’s XI urges deeper reform, further opening up the nation
- ByteDance Chief Reconsiders Options After New China Rules
- Tesla Has Entered Into An Equity Distribution Agreement To Sell Up to $5B in Stock
- Consumer prices in euro area fall for the first time in four years
- AstraZeneca Plc has started a large-scale human trial of its coronavirus vaccine in the US
- Work-From-Home Stocks Gain After Zoom Handily Beats Estimates
Economic data from China is giving investors comfort that global manufacturing is recovering from the pandemic as factory activity there rose at the fastest pace in nearly a decade. In Europe, the economic picture was more uneven, but there seem to be areas of improvement. Germany’s output grew at its fastest pace since February 2018, while in France it contracted. Germany expects the blow from the coronavirus crisis to be less severe than feared, as the country reduces its traditional reliance on exports. Global trade is on course to recover more quickly from the coronavirus pandemic than after the 2008 financial crisis, according to Germany’s Kiel Institute for the World Economy.
EQUITIES: Zoom Soars on Surging Sales, Forecasts; Shares soar more than 32% pre-market
U.S. stock index futures advance while the dollar drops to a two-year low after Chinese manufacturing data indicated that exports are laying a foundation for a recovery. U.S. stock futures ticked up ahead of the release of manufacturing data that is likely to provide insight into the pace of the economic recovery. The S&P500 ended last month with a 7% advance for its best August since 1986.
S&P 500 futures +0.2%, Nasdaq +0.8%, Russell 2000 futures are flat, Dow futures are down 0.1%. RSI remains elevated, so need to work off overbought condition a bit.