Equity Markets Waiting on a Deal

No surprises from the FOMC
U.S. Q2 GDP came in at a dismal -32.9%.
Apple, Amazon, Alphabet, and Facebook report earnings
Stock Market Update for Traders

Stock Market Update for Traders

Wednesday's Close

E-mini S&P 500 Futures (September): Settled at 3252.50, up 39.50

E-mini Nasdaq-100 Futures (September): Settled at 10,675.25, up 134.25

Risk-assets across the board are sharply lower from yesterday’s healthy close.

Yesterday, the Federal Reserve walked a thin line well; they left policy unchanged and reaffirmed their “do whatever it takes” narrative. The statement noted a reprieve from the worst economic conditions, however, the committee stopped short on forward guidance and details on what it would take to rein in the unprecedented pandemic support. Fed Chair Jerome Powell praised Washington on their steadfast fiscal measures, but made it clear more was needed. White House Chief of Staff Meadows said late Wednesday he is “not optimistic” of a deal after meetings with Democratic leaders. Both sides face-off over unemployment benefits as to not disincentivize Americans to work with only a couple of days to go before the current measures are exhausted. 

We look to a jam-packed calendar today. Up first was German GDP which contracted larger than expected at -10.1% QoQ versus -9.0% expected. U.S. Q2 GDP came in at a dismal -32.9%. Despite an absolute deluge of companies reporting earnings this morning and after the bell, it's the 4 names that will matter most. Apple, Amazon, Alphabet, and Facebook all report later today. The day isn’t quite done after as we look to Chinese Manufacturing PMI at 8:00 pm CT.

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