Stimulus Headline Risk Is On Today

October 20, 2020 08:05 AM
Benchmarks took a dive Monday
UBS up 7% after solid earnings
Building Permits and Housing Starts were mixed this morning
Equity Index futures

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Monday's Close

E-mini S&P 500 Futures (December): Settled at 3422.75, down 39.25

E-mini Nasdaq-100 Futures (December): Settled at 11,650.25, down 17.75

U.S. benchmarks quickly stalled out yesterday morning and an unenthusiastic tape slipped sharply into settlement. The White House created a self-imposed deadline today for Congress to iron out stimulus details and this coupled with headlines that President Trump said House Speaker Pelosi does not want a Coronavirus Aid bill ahead of the election weighed on risk sentiment. However, there are ongoing talks between the Speaker and U.S. Treasury Secretary Mnuchin that will continue today. Updates throughout the day will certainly swing the tape as sentiment battles the fear of additional restrictions due to virus outbreaks.

On the earnings front, UBS posted blowout third-quarter results and the stock is up nearly 7%. Domestically, Travelers are setting a strong tone gaining more than 3% premarket after strong results. Lockheed Martin, Procter & Gamble, and Philip Morris are all holding ground in slightly positive territory after reporting this morning. Netflix headlines after the bell along with Texas Instruments.

Building Permits and Housing Starts were mixed this morning. NY Fed President Williams speaks at 8:00 am CT and Fed Governor Quarles speaks at 9:50 am CT; both positions are permanent voting roles. Chicago Fed President Evans, a 2021 voter, speaks at noon CT. There is also a 2-year action then.

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