E-mini S&P 500 Futures (September): Settled at 3265.50, up 14.25
E-mini Nasdaq-100 Futures (September): Settled at 10,804.25, down 46.75
With a focus on earnings and stimulus, U.S. benchmarks are set to open higher.
Despite unenthusiastic results from tech behemoth and cloud bellwether Microsoft, Tesla’s headline numbers are keeping the risk-environment buoyant. They reported a net profit of $114 million, $428 million of which came from selling emission credits; yes, you read that correctly. Aiding the overnight surge was results from Unilever and Daimler. Unilever, the British-Dutch consumer goods company, topped YoY profits and the stock is up 7%. Although Daimler posted losses, the Mercedes maker was upbeat on the 2nd half of the year and the stock is up 5%. There is a deluge of earnings both before and after the bell today.
As for stimulus, Washington, D.C. is working to iron-out a 5th bipartisan fiscal bill since the onset of the pandemic. The current measures are due to run out at the end of the month and Congress begins their recess August 7. Late yesterday, the market seemed to respond positively to headlines that Republicans were considering reducing unemployment payments to $400 per month from $600 per week ($2400 per month). Although a drastic reduction, it would be good through the end of the year. The market’s response was likely due to positive steps forward and guarantees for a longer extension. Headline developments will certainly swing sentiment through the session.
The market is broadly ignoring U.S.-China tensions, but traders should keep an ear to the ground. Ultimately, there is a belief President Trump will not increase pressure on the communist nation heading into the election in fear of derailing the rally. Instead, we may see a number of small maneuvers like shutting down the Houston consulate.