Daily Game Plan from Cabrera Capital

Commentary, News

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

TODAY’S HIGHLIGHTS:

  • 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. 

EQUITIES:   

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).

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