Friday July 31, 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, Employment Cost Index; 9:45ET Chicago PMI; 10:00ET Consumer Sentiment
- USD having its worst monthly performance in a decade
- China reported to set up bailout fund for state companies
- UK PM Johnson: Our Plan To Reopen Is Conditional, announces delay to reopening of venues
- Hong Kong Cancels Fall Election As Coronavirus “Third Wave” Intensifies
Global shares are mixed as investors digest conflicting signals from turbo-charged tech and dismal economic readings. The European GDP numbers add to stark data from the US, though Chinese manufacturing figures indicate a slow mend for Asia’s largest economy. Spain and France reported record economic contractions. Unprecedented deaths in several U.S. states and a partial lockdown in northern England show the pandemic is still wreaking havoc. The U.K. government tightened lockdown rules for more than 4 million people across a large part of northern England, seeking to contain a new spike in cases.
U.S. index futures advanced on Friday, with Nasdaq futures outperforming as earnings from big U.S. tech stocks got a boost from increased demand during the pandemic, shaking off recent dismal economic data. In U.S. premarket trading, shares in Apple and Facebook both gained more than 6%, and Amazon.com rose 5.4% after reporting results. Apple especially trounced analyst forecasts, with locked-down consumers snapping up new iPhones, iPads and Mac computers to stay connected during the pandemic.
E-Mini S&P is up 0.3%, Nasdaq +1.1%, Russell 2000 futures -0.5%, Dow futures +0.15%. SPX will have the 3263 area as initial key to start the day (s/t .786).