Equity Futures' Intraday Recovery

October 16, 2020 07:44 AM
U.S. benchmarks rebounded yesterday from crucial levels of technical support.
The impasse in Washington continues
Retail sales came in stronger than expected
Stock Market Update for Traders

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Thursday's Close

E-mini S&P 500 (December): Settled at 3475.50, down 5.50

E-mini Nasdaq-100 (December): Settled at 11,874, down 100.25

U.S. benchmarks rebounded yesterday from crucial levels of technical support. The session low came against our major 3-star support at the opening bell and a failure to go lower provided a tailwind for a pivotal intraday recovery despite an unenthusiastic news cycle.

The impasse in Washington continues, but U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi have provided enough “hopium.” The White House has shown interest in working with the Democrat-led House, but the Republican-led Senate has refused to agree on a larger price tag and plans to vote on its $500 billion package next week. We maintain our belief that a Coronavirus Aid package will get passed this year, albeit after the election.

On the earnings front, JB Hunt whiffed and the stock was down 7% pre-market. This comes amid a steady rise intransport stocks. In fact, Fed Ex broke out to new record highs yesterday. Kansas City Southern is on deck this morning. Schlumberger is down by 1% ahead of the bell after the oil services company reported an adjusted profit beat and a revenue miss.

Retail Sales came out 7:30 a.m. CT. Sales increased1.95% MoM versus the anticipated +0.7% MoM. Excluding automobiles, gasoline, building materials and food services, the sales number was1.4%. Industrial Production is due at 8:15 am CT and fresh October Michigan Consumer data is due at 9:00 a,m. CT. Traders want to prepare for a deluge of economic data from China Sunday night that includes Q3 GDP and September Industrial Production

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