Investors are very bullish on the market today for several reasons and S&P futures are higher this morning. Although there is HUGE uncertainty in the US elections, it appears the markets are pricing in a TRUMP win. As we get closer to the election, we expect the markets to get choppy. A dip would be likely if Biden gains in polling AND makes a statement about rolling back corporate tax. Till then we are experiencing a strong BULL trend in the market.
3 BULL Stock Market DRIVERS
The three drivers this week are:
Reason 1: Government Cheese: 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. This will trigger most states to reopen if they haven’t already.
| S&P 500 | 3508.01 | Buy |
| Crude | 43.346 | Buy |
| Gold | 1964.93 | Buy |
| Sector | Last | CHG% | CHG | High | Low | Signal |
| CONSUMER DISCRETIONARY | 1251.82 | 0.49% | 6.15 | 1253.96 | 1246.19 | Buy |
| CONSUMER STAPLES | 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:
CAN, CTLT, and IMAB before the open.
CUE, MEG, RXT, SCSC, and ZM after the close.
Tuesday:
BBW and GSM before the open.
CAL, CDMO, HRB, JAMF, NTNX, and SCVL after the close.
Wednesday:
GES, LE, M, VRA, and XIN before the open.
AMBA, CLDR, CPRT, CRWD, EGAN, FIVE, GWRE, KLXE, MDB, MTRX, PD, PVH, RKT, SAIC, SMAR, SPWH, and ZUO after the close.
Thursday:
BNED, CIEN, CPB , DBI, DCI, DLTH, GCO, HOV, KIRK, MEI, MIK, MOMO, SIG, and TTC before the open.
AOUT, AVGO, COO, CTHR, DOCU, DOMO, MDLA, NX, OXM, SWBI, TLYS, and YEXT after the close.
Weekly Economic Calendar:
Monday:
Japanese Preliminary Industrial Production for July
Japanese Preliminary Shipments for July
Japanese Consumer Confidence Index for August
Japanese Construction Orders for July
Japanese Housing Starts for July
Chinese CFLP Manufacturing, Non-Manufacturing, Services PMI for August
German Preliminary CPI for August (8 a.m.)
Fed’s Clarida Speaks (9 a.m.)
Fed’s Bostic Speaks (10:30 a.m.)
Dallas Fed Index for August (10:30 a.m.)
Tuesday:
Japanese Job Seekers Ratios for July
Japanese Unemployment Rate for July
Japanese MoF Capex Survey for Q2
Markit/JMMA Japan Final Manufacturing PMI for August
Japanese Registered Auto Sales for August
Markit/Caixin China Manufacturing PMI for August
ECB’s de Guindos Speaks (3:30 a.m.)
Markit France Final Manufacturing PMI for August (3:50 a.m.)
Markit Germany Final Manufacturing PMI for August (3:55 a.m.)
German Employment, Unemployment Change, Rate for August (4 a.m.)
Markit Eurozone Final Manufacturing PMI for August (4 a.m.)
BoE Mortgage Approvals for July (4:30 a.m.)
BoE Net Mortgage Lending for July (4:30 a.m.)
BoE Net Consumer Credit for July (4:30 a.m.)
U.K. Net Lending to Individuals for July (4:30 a.m.)
U.K. Final CIPS Manufacturing PMI for August (4:30 a.m.)
Eurozone Preliminary CPI for August (5 a.m.)
Eurozone Unemployment Rate for July (5 a.m.)
Markit U.S. Final Manufacturing PMI for August (9:45 a.m.)
Construction Spending for July (10 a.m.)
ISM Manufacturing for August (10 a.m.)
ECB’s Lane Speaks (12 p.m.)
Fed’s Brainard Speaks (1 p.m.)
American Petroleum Institute Crude Oil Inventory Data (4:30 p.m.)
Wednesday:
U.K. BRC Shop Price Index for August
U.K. ONS House Price for may (4:30 a.m.)
Eurozone PPI for July (5 a.m.)
MBA Mortgage Applications (7 a.m.)
ADP Employment Survey for August (8:15 a.m.)
Final Core Capital Goods Orders for July (10 a.m.)
Final Durable Orders, Shipments for July (10 a.m.)
Fed’s Williams Speaks (10 a.m.)
Factory Orders, Inventories for July (10 a.m.)
Energy Information Administration Crude Oil Inventory Data (10:30 a.m.)
Fed’s Mester Speaks (12 p.m.)
Fed’s Beige Book (2 p.m.)
Thursday:
Japanese Services PMI for August
Markit/Caixin China Services PMI for August
Domestic Auto Sales for August
Markit France Final Composite, Services PMI for August (3:50 a.m.)
Markit Germany Final Composite, Services PMI for August (3:55 a.m.)
Markit Eurozone Final Composite, Services PMI for August (4 a.m.)
U.K. Final CIPS Services PMI for August (4:30 a.m.)
Challenger Layoffs for August (7:30 a.m.)
Export, Imports Goods & Services for July (8:30 a.m.)
Final Unit Labor Costs for Q2 (8:30 a.m.)
Final Productivity for Q2 (8:30 a.m.)
Trade Balance for July (8:30 a.m.)
Initial Jobless, Continuing Claims (8:30 a.m.)
Final Composite PMI for August (9:45 a.m.)
Markit U.S. Final Services PMI for August (9:45 a.m.)
ISM Non-Manufacturing for August (10 a.m.)
ECB’s Schnabel Speaks (11 a.m.)
Fed’s Evans Speaks (12:30 p.m.)
Friday:
German Manufacturing Orders, Turnovers for July (2 a.m.)
German Construction PMI for August (3:30 a.m.)
U.K. CIPS Construction PMI for August (4:30 a.m.)
Preliminary Hourly Earnings for August (8:30 a.m.)
Preliminary Average Workweek for August (8:30 a.m.)
Manufacturing Payrolls for August (8:30 a.m.)
Nonfarm Payrolls, Private Nonfarm Payrolls for August (8:30 a.m.)
Unemployment Rate for August (8:30 a.m.)
ECB’s Lane Speaks (11 a.m.)
Baker Hughes Rig Count Data (1 p.m.)
CFTC Commitment of Traders Report (3:30 p.m.)
