E-mini S&P 500 (September): Settled at 3245.25, up 31.25
E-mini Nasdaq-100 (September), Settled at 10,951, up 328.50
U.S. benchmarks are set to continue their push higher led by tailwinds from recovery fund stimulus and strong earnings from IBM. The E.U. reached a deal on their lauded recovery fund. The watered-down version allows for €390 billion of the €750-billion fund to be distributed as grants, a drop from the initial 500 billion proposal. Although this cements a unified bloc and creates a budget, there will be tight restrictions and approvals needed to receive the grants. Furthermore, the member states must detail how funds will be invested. Still, it seems far-fetched that money will be flowing to the neediest countries before January 2021 as the plan is only expected to be ratified in the 3rd quarter.
In Washington, D.C. lawmakers hope to pass fresh fiscal measures before their August recess. Markets are certainly pricing in that something gets done despite deep division between both parties on how.
Banks are finding support from the E.U. news and UBS is a leader this morning after reporting better profit than expected. However, their outlook was less enthusiastic for the 2nd half of the year. In the U.S., Coca-Cola, Philip Morris and Lockheed Martin are all higher after reporting this morning. After the bell, Texas Instruments, Capital One, United Airlines and others will be closely watched.
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