Friday September 4, 2020 Trading Desk: (312) 236-8907
TODAY’S GAME PLAN: from the trading desk, this is not research
DATA/HEADLINES: 8:30ET Employment Report*
Economists project Friday’s jobs report will show the unemployment rate dropped below 10% for the first time since March, with employers adding 1.35 million people to payrolls. The whisper number is 693k. This would still leave payrolls more than 11 million short of pre-pandemic levels. A slew of layoff announcements by major companies including MGM Resorts International, Coca-Cola and United Airlines also implies weakness in the coming months.
- The suspect in the recent fatal shooting of a right-wing activist in Portland, Oregon, was killed in Washington state when police moved to arrest him
- Protests are planned this weekend at the Kentucky Derby
- Pelosi, Mnuchin agree to avoid government shutdown in October
- RUSSIA COVID VACCINE SHOWED ANTIBODY RESPONSE IN TRIAL: LANCET
- Biden says he is looking forward to debating Trump
World shares slipped from record highs on Friday, and were on course for their worst week in more than two months, while gains in bonds and the dollar were modest as investors waited to see if U.S. jobs data triggers a bigger sell-off. House Speaker Pelosi and Treasury Secretary Mnuchin have agreed to work to avoid a government shutdown before the election, and not let the stalemate over virus-relief legislation hold up a vital stopgap spending bill. The Bank of Japan is likely to consider upgrading its economic assessment amid signs of a rebound from the economy’s worst contraction on record last quarter. The recession in France will not be as bad as initially forecast, Finance Minister Bruno Le Maire said.
US stock-index futures indicated a mixed opening for equities after the biggest slide in almost three months, with investors focusing on the August jobs report due today. Contracts on the S&P 500 and the Dow reversed earlier losses to trade higher, before faltering again. The Nasdaq 100 futures trimmed a decline. US indexes marked their biggest one-day falls since June on Thursday on the back of profit-taking, while analysts worry a disappointing non-farm payrolls report could deepen the selling.
S&P 500 futures -0.4%, Nasdaq -1%, Russell 2000 futures -0.2%, Dow futures are -0.07%. We were looking for some pullback in SPX with the Relative Strength Index (RSI) at highest level since the January 2018 top. Look for a test of the 50dma soon. E-mini SP has 3487 area as initial resistance.