Daily Game Plan from Cabrera Capital

Commentary, News

Wednesday August 5, 2020                                                        Trading Desk: (312) 236-8907

TODAY’S GAME PLAN:  from the trading desk, this is not research

DATA/HEADLINES:  8:15ET ADP Employment +167,000 Exp. 1.5MM;  8:30ET Trade Deficit, Fed’s Clarida interview; 9:45ET  Markit Services PMI;  10:00ET  ISM Non-Manufacturing Index

More than half of Americans with credit card debt say they won’t be able make minimum payments over the next three months without more bailout money, per CreditCards.com survey.

TODAY’S HIGHLIGHTS:

  • Global coronavirus deaths surpassed 700,000
  • China’s economic rebound better than expected in Q2: World Bank
  • China is waiving transaction fees between the yuan and 12 currencies to skirt the US dollar link
  • U.S. and China prepare to assess their phase-one trade agreement 

White House and Democratic negotiators trying to get a deal on a final massive virus relief package by the end of the week still must overcome a raw mix of election-year pressures, internal GOP splits and a profound lack of trust between the parties. A deal on virus-relief drew closer as the White House and Democrats both made concessions, even though they remain far apart on some key issues.  The Senate is scheduled for an August break on Friday and the House is already out. But lawmakers could be brought back to vote on 24 hours’ notice. White House negotiators on Tuesday vowed to work “around the clock” with congressional Democrats to try to reach a deal on coronavirus relief by the end of this week. A major sticking point is Dems want to see massive aid for states and localities.

EQUITIES:   

World markets were boosted overnight by the prospect of a deal on virus-aid in the US and a pick-up in business activity in the euro region fueled optimism that a global economy recovery is on track. US equity index futures are higher with European stocks as risk sentiment gets boost from U.S.-China trade discussions and progress toward a U.S. economic aid package.

E-Mini S&P is up 0.4%, Nasdaq +0.15%, Russell 2000 futures +0.85%, Dow futures +0.6%. SPX : look for the gap on the original virus fears back in February to be tested and act as key resistance.  Above the gap we just make new highs…

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