Thursday September 3, 2020 Trading Desk: (312) 236-8907
TODAY’S GAME PLAN: from the trading desk, this is not research
DATA/HEADLINES: 8:30ET Jobless Claims, Trade Deficit, Productivity (revision), Labor Costs; 9:45ET Markit Services PMI (final); ISM Services Index; 10:00ET BOE’s Bailey speaks; 12:30ET Fed’s Evans speaks
Economists are forecasting that weekly claims for unemployment benefit will drop below 1 million for only the second time since mid-March. Tomorrow’s payrolls number is expected to show companies added 1.35 million positions in August.
- Infectious disease expert Anthony Fauci warned of a potential surge in US cases from the coming long holiday weekend
- First results of a vaccine could come by mid-September from AstraZeneca according to Airfinity
- Robinhood Probed by SEC Over Payments From High-Speed Traders and Wall Street Firms
- Chicago is looking to the municipal-bond market for options to close its ballooning budget deficits, refinancing targeted for Q4
- Trump is suing five states in attempts to restrict voting options in November
- Biden called for live fact-checking of the presidential debates
- Worst-Ever Arctic Fires Released Record Amount of CO2 This Year link
Around the world, the equities rally is gaining fresh momentum as the S&P 500 hit another record yesterday and Japanese stocks are trading at the highest since February. France’s government unveiled the long-awaited 100 billion euro ($118 billion) stimulus plan which includes wage subsidies, tax cuts for businesses and funding for environmental projects. It will be spread over two years and aims to shift away from the emergency spending of the Covid crisis to addressing longer term problems of weak investment and job creation.
EQUITIES: Broadcom, Campbell Soup and Smith & Wesson are among the companies reporting earnings
US equity index futures are mixed to lower this morning after the S&P and Nasdaq hit new record highs yesterday even though there was some rotation away from momentum stocks like Apple, Tesla and Zoom. The U.S. Centers for Disease Control and Prevention has told states to prepare for a Covid-19 vaccine to be ready for distribution by late October, adding to overall sentiment.
S&P 500 futures -0.4%, Nasdaq -1%, Russell 2000 futures -0.2%, Dow futures are -0.07%. Relative Strength (RSI) is at highest level since the January 2018 top in SPX, so on guard for some pullback to work off extreme overbought condition.