E-mini S&P 500 (September): Settled at 3344.25, up 28.25
E-mini Nasdaq-100 (September): Settled at 11,261.25, up 169.50
Bellwethers Apple, Facebook, Alphabet, Microsoft, and Amazon led the way yesterday with help from Adobe, Salesforce, and Disney. Nasdaq-100 futures closed at a fresh record high, and these tech stocks accounted for the S&P 500’s resilience against one of the most famous technical levels in history; the scene of the crime gap close from February 21. The S&P 500 closed yesterday 1.5% from its February 20 record high.
Nonfarm Payrolls came out at 7:30 am CT showing 1.8 million jobs added in July versus expectations of 1.6 million. The unemployment rate dropped to 10.2% from a peak of 14.7% in April.Since March, 14 million jobs have been lost. The private ADP survey for July released Wednesday showed vastly less jobs added at 167,000. ADP’s loss rate since March is in line with the official nonfarm data. The recovery is overshadowed by expectations for mounting jobs cuts whether it be from airlines, struggling industries or small businesses once loans were exhausted. Average hourly earnings on a yearly basis is expected to increase by 4.1%. Wage data is skewed due to many low paying jobs disappearing and many individuals choosing to not go back to work because they are earning more from unemployment.
This pins Washington’s deadlock in the spotlight. There remains a great divide between Senate Republicans and House Democrats as today’s deadline to pass a 5th stimulus package looms. Each side is holding ground and pandering to their constituency ahead of November elections. President Trump has said he could step in with executive action to extend jobless benefits, a moratorium on evictions and potentially suspend payroll taxes.
U.S.-China relations are also hanging in the balance. President Trump signed an executive order prohibiting U.S residents from doing business with TikTok and WeChat, giving them 45 days to comply. Overnight, we got trade balance data with China. The trade surplus soared to the second highest monthly total on record as exports surged by 7.2% versus -0.2% expected.
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