E-mini S&P 500 Futures (December): Settled at 3383, down 10.50
E-mini Nasdaq-100 Futures (December): Settled at 11,588, up 98.75
Risk-assets are down sharply at the onset of U.S. hours. Heavy selling began at the European open and on news that German Chancellor Merkel will look to close bars and restaurants for November. The German Dax is down 3.3% and at the lowest level since June 15th. Benchmarks across Europe are broadly following suit. Domestically, the State of Illinois has taken similar steps to roll back reopenings and has increased restrictions beginning Friday, including a ban on indoor dining.
With the election less than a week away, the Midwest battleground states see a surge in Covid-19 cases. The U.S. Dollar is strengthening as a safe-haven asset, and Gold, as well as other commodities, are taking a beating on deflationary fears. Although we never expected Washington to agree on a bipartisan Coronavirus Aid bill ahead of the election, the added stimulus would have certainly helped stave off the selling.
We are in the thick of earnings season. Microsoft reported after the bell yesterday, and the behemoth is down about 2% premarket. Although they topped third-quarter estimates, led by strong demand for its cloud services, the fourth quarter's softer than expected outlook has weighed on the stock. Among a deluge of companies to report this morning are Boeing, Visa, Norfolk Southern, and UPS. There is also a tall lineup after the bell.
Today’s calendar pales in comparison to tomorrow. Ahead of the bell, we have the first look at Q3 GDP accompanied by earnings. After the bell, each Apple, Amazon, Alphabet, and Facebook report third-quarter results.
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