Investors are very bullish on the market today for several reasons and S&P futures are higher this morning. The markets seem to be pricing in TRUMP’s victory despite the huge uncertainty surrounding the US election. We expect markets to become more volatile as we approach the election. Biden’s rise in the polls AND his statement regarding rolling back corporate tax would likely cause a dip. The market is currently experiencing a strong BEAR trend.
Bull Stock Market Drivers
This week, the three drivers are:
Reason 1: Government Cheddar: White House Reps have said President Trump would be willing to sign a $1.3 trillion coronavirus-stimulus bill making a deal with the Democrats likely.
Reason 2: Coronavirus Vaccine Fast-Track: The FDA Admin head Stephen Hahn said he’d be willing to fast-track approval of a coronavirus trial is the reward was worth it.
Reason 3 The Daily COVID infections continued to remain below the mid-July peak as the national testing positivity rate fell. If they haven’t done so already, this will cause most states to reopen.
| S&P 500 | 3508.01 | Buy |
| Crude Oil | 43.346 | Buy |
| Gold | 1964.93 | Buy |
| Sector | Last but not least, | CHG% | CHG | High Quality | Low Prices | Signal |
| CONSUMER DISCRETIONARY | 1251.82 | 0.49% | 6.15 | 1253.96 | 1246.19 | Buy |
| STAPLES FOR CONSUMERS | 673.67 | 0.93% | 6.2 | 673.88 | 664.58 | Strong Buy |
| HEALTH CARE | 1255.85 | 0.20% | 2.53 | 1256.33 | 1247.11 | Buy |
| INDUSTRIALS | 664.07 | 0.92% | 6.07 | 664.35 | 657 | Buy |
| INFORMATION TECHNOLOGY | 2164.42 | 0.96% | 20.59 | 2170.28 | 2143.83 | Buy |
| MATERIALS | 401.66 | 1.10% | 4.38 | 401.95 | 397.11 | Buy |
| REAL ESTATE | 226.49 | 0.72% | 1.63 | 226.5 | 223.1 | Strong Buy |
| Communication Services | 209.9 | 0.32% | 0.67 | 210.05 | 208.72 | Buy |
| UTILITIES | 298.5 | 0.27% | 0.79 | 298.83 | 295.52 | Sell |
| FINANCIALS | 420.73 | 0.45% | 1.89 | 421.51 | 417.11 | Buy |
| ENERGY | 272.48 | 1.85% | 4.96 | 272.94 | 267.1 | Sell |
Weekly Earnings Report
Monday:
Before the opening, CAN, CTLT and IMAB are required.
After the close, CUE, RXT SCSC ZM, MEG and RXT.
Tuesday:
BBW & GSM before opening.
CAL after the close.
Wednesday:
Before the opening, GES, LE and VRA are required.
After the close, AMBA, CLDR CPRT CRWD EGAN FIVE MDB MTRX PVH RKT SAIC SMAR SPWH ZUO
Thursday:
BNED (before the open), CIEN (before the open), CPB, DBI, DCI DLTH GCO HOV KIRK MEI MIK MOMO SIG TTC TTC
AOUT, AVGO. COO. CTHR. DOCU. DOMO. MDLA. NX. OXM. SWBI.
Weekly Economic Calendar
Monday:
Japanese Preliminary Industry Production for July
Japanese Preliminary Shipments in July
Japanese Consumer Confidence Index, August
Orders of Japanese Construction for July
Japanese Housing Starts in July
Chinese CFLP Manufacturing, Non-Manufacturing, Services and PMI for August
German Preliminary August CPI (8 a.m.
Clarida speaks (9 am)
Fed’s Bostic (10:30 AM)
Dallas Fed Index for the month of August (10:30 am)
Tuesday:
Japanese Job Seekers Ratios for July
Japanese Unemployment Rate in July
Survey of Japanese MoF Capex for Q2
Markit/JMMA Japan Final Production PMI for August
Japanese Registrations for August
Markit/Caixin China Manufacturing Manufacturing PMI for August
ECB’s de Guindos Speaks (3:30 a.m.)
Markit France final Manufacturing PMI for the month of August (3:50 AM)
Markit Germany Manufacturing PMI Final for August (3.55 am)
German Employment and Unemployment Rates for August (four o’clock in the morning)
Markit Eurozone Manufacturing PMI for the month of August (4:00 a.m.
BoE Approvals of Mortgages for July (4.30 a.m.).
BoE Net Mortgage Loans for July (4.30 am)
BoE Consumer Credit Net for July (4.30 am)
U.K. net lending to individuals for July (4.30 a.m.).
U.K. Final CIPS Manufacturing Purchasing Managers’ Index for August (4.30 am)
Eurozone CPI Preliminary for August (5 am)
Eurozone Unemployment rate for July (5 am)
Markit U.S. Final Manufacturing PMI for the month of August (9:45 am)
Construction Spending July (10:30 a.m.
ISM Manufacturing in August (10:30 a.m.
ECB Lane Speaks (12 p.m.
Fed’s Brainard (1 p.m.).
American Petroleum Institute Crude Oil Inventory data (4:30 p.m.
Wednesday:
U.K. BRC Shop Prices Index for August
U.K. ONS House Prices for May (4.30 a.m.).
Eurozone PPI July (5:00 a.m.
MBA Mortgage Application (7 a.m.
ADP Employment Survey, August (8.15 a.m.
Final Core Capital Goods orders for July (10 am)
Shipments of July’s final durable orders (10 am)
Fed’s Williams (10:30 a.m.).
Inventories and Factory Orders for July (10 am)
Energy Information Administration Crude oil Inventory Data (10:30 am)
Fed’s Mester Speaks at 12 p.m.
Fed’s Beige Book (2 p.m.)
Thursday:
Japanese Services PMI August
Markit/Caixin China Services PMI, August
Domestic Auto Sales in August
Markit France Services Composite PMI Final Composite for August (3.50 a.m.).
Markit Germany Services Composite PMI Final for August (3.55 a.m.).
Markit Eurozone Composite Final, Services PMI for the month of August (4:00 a.m.
U.K. Final CIPS PMI for August (3:30 a.m.).
Challenger Layoffs in August (7:30 am)
Export, Imports Goods & Services for July (8:30 a.m.)
Final unit labor costs for Q2 (8.30 am)
Final Productivity for the Q2 (8.30 am)
Trade Balance for the month of July (8:30 am)
Initial Jobless Claims, Continuing (8:30 a.m.
Final Composite PMI for the month of August (9:45 am)
Markit U.S. Final Services PMI, August (9.45 am).
ISM Non-Manufacturing in August (10:30 a.m.
Schnabel, ECB (11 a.m.).
Evans speaks at Fed (12:30 p.m.
Friday:
German Manufacturing Orders & Turnovers For July (2 a.m.
German Construction PMI August (3:30 am)
U.K. CIPS Construction pmI for August (4.30 a.m.).
Earnings Preliminary for August (8.30 am)
Preliminary Workweek Average for August (8.30 am)
Manufacturing Payrolls in August (8:30 am)
Nonfarm Payments, Private Nonfarm Payments for August (8:00 a.m.
Unemployment Rate in August (8:30 am)
ECB Lane speaks (11 a.m.
Baker Hughes Rig Count (1:00 p.m.
CFTC Commitment of Traders report (3:30 p.m.
