- US stock markets continued track higher this week despite a renewed round of US civil unrest and landfall of category 4 hurricane Laura in the Gulf of Mexico. By Friday the Dow managed to recoup all of it 2020 losses ahead of the implementation of historic composition changes set to take place Monday. The S&P rode a 5-day win streak of all-time highs testing 3500 for the first time, and the NASDAQ continued to ride the ongoing wave of nearly unprecedented momentum into technology shares. Covid-19 developments remained mostly positive following FDA approval for rapid coronavirus tests by Abbvie, as well as continued constructive reports surrounding various vaccine development. Case trends remained on downtrend in US and most of Asia, though EU showed some upward curve. - The economic data turned a bit more constructive, once again led by strength in the housing market. The US Federal Reserved reiterated it is serious about keeping support flowing into this economy. By clarifying their long run goals after completing the long awaited policy review, Chairman Powell and others formally acknowledged that inflation will likely have to run above its 2% target for some time before they can be sure they achieved their mandated goal. The Dollar lost some ground following the announcement and gold prices lifted. The US yield curve also steepened after long dated debt underperformed. For the week the S&P rose 3.3%, the Dow added 2.6% and NASDAQ gained 3.4%. - In corporate news this week, Salesforce reported a monster beat and raised its outlook by a wide margin, while also announcing it would lay off some of its workforce as part of a rebalancing. On the retail front, Best Buy saw a boost from the stay-at-home state of affairs, as online sales rose by over 200%, while it continues to weigh availability of inventory to match consumer demand. Dicks Sporting Goods saw record sales amid its own nearly 200% rise in e-commerce revenue. Nordstrom’s disappointed, notching a drop in digital sales on a year-on-year basis. Ulta Beauty smashed EPS estimates and noted sales trends have continued to improve. Amazon unveiled a new service dubbed ‘Amazon Halo,' along with the Amazon Halo Band, a health and wellness device which can purportedly also track a user’s moods. Google said it would invest $100M into telehealth provider Amwell as part of its multi-year plan to improve patient and clinician telehealth experiences. Walmart announced it is teaming up with Microsoft on a bid for TikTok’s US operations, while Oracle and its consortium was said to still be interested in the social media asset. Moderna confirmed it would supply Europe with 80M doses of its mRNA vaccine against COVID-19, while Sanofi’s CEO said recent data has increased confidence in the success of its two coronavirus vaccine candidates.
MON 8/24 2317.TW Reportedly Foxconn and Pegatron likely to relocate some facilities to Mexico due to continued US China trade war - press GOOGL Reportedly plans $100M investment in telehealth provider Amwell - CNBC CRM Amgen, Salesforce, Honeywell to join Dow Jones Industrial Average Index; to replace Exxon, Pfizer, and Raytheon; effective prior to the open on Aug 31st; prompted by Apple's 4:1 stock split reducing technology sector weighting
TUES 8/25 *(DE) GERMANY AUG IFO BUSINESS CLIMATE SURVEY: 92.6 V 92.1E (4th straight month of improvement) BBY Reports Q2 $1.75 v $1.05e, Rev $9.91B v $9.69Be; continues to weigh availability of inventory to match consumer demand *(US) AUG CONSUMER CONFIDENCE: 84.8 V 93.0E *(US) JULY NEW HOME SALES: 901K V 790KE *(US) AUG RICHMOND FED MANUFACTURING INDEX: 18 V 10E
WEDS 8/26 *(US) JULY PRELIMINARY DURABLE GOODS ORDERS: 11.2% V 4.7%E; DURABLES (EX-TRANSPORTATION): 2.4% V 2.0%E (US) Nevada reports July casino gaming Rev $756.8M, -26.2% y/y; Las Vegas strip Rev $330.1M, -39.2% y/y *(US) DOE CRUDE: -4.7M V -3ME; GASOLINE: -4.6M V -1.5ME; DISTILLATE: +1.4M V 0ME MRNA Reports Covid-19 vaccine induces immune responses in small trial of older adults; produces similar antibody levels in seniors as in younger people (US) National Hurricane Center (NHC): Hurricane Laura has become 'extremely dangerous Category 4 hurricane'
THURS 8/27 *(US) INITIAL JOBLESS CLAIMS: 1.01M V 1.00ME; CONTINUING CLAIMS: 14.54M V 14.40ME *(US) Q2 PRELIMINARY GDP ANNUALIZED Q/Q: -31.7% V -32.5%E; PERSONAL CONSUMPTION: -34.1% V -34.6%E *(US) Q2 PRELIMINARY GDP PRICE INDEX: -2.0% V -1.8%E; CORE PCE Q/Q: -1.0% V -1.1%E AMZN Introducing Amazon Halo and Amazon Halo Band, new service that helps customers improve their health and wellness (US) Fed's Powell formally clarifies long run goals following policy review: Fed will now target 2% inflation on average; long run goal remains to achieve 2% inflation; would not be appropriate to specify a fixed goal for employment (US) Fed's Powell: important to communicate to the public that any inflation overshoots will be moderate and not go on for long periods of time - Jackson Hole Q&A
FRI 8/28 *(JP) PM ABE SAID PLANNING TO RESIGN CITING HEALTH CONCERNS - NHK 3328.HK Reports H1 (CNY) Net 36.5B v 42.7B y/y, NII 73.8B v 70.1B y/y *(EU) EURO ZONE AUG ECONOMIC CONFIDENCE: 87.7 V 85.0E *(US) JULY PERSONAL INCOME: +0.4% V -0.3%E; PERSONAL SPENDING: 1.9% V 1.6%E *(US) AUG CHICAGO PURCHASE MANAGERS INDEX: 51.2 V 52.6E (US) Weekly Baker Hughes Rig Count: 254 v 254 w/w (flat w/w)