The Monday Market Minute

  • Global stocks rally as China markets roar, investors extend stimulus bets heading into the U.S. earnings season.
  • Around 31 companies will report this week, including the country’s biggest banks, with analysts expecting third quarter profits to fall 21% from last year.
  • Apple unveils is new line-up of 5G phones on Tuesday, the same day that Amazon will launch its annual ‘Prime Day’ shopping event.
  • President Trump renews call for stimulus deal, but confusion grips talks as both sides play politics 22 days ahead of the November elections.
  • Europe records 100,000 daily coronavirus cases, the highest tally since the pandemic began, in what is likely to be an omen for a second U.S. wave as domestic weather cools.
  • U.S. equity futures suggest a firmer open on Wall Street, following its best five-day stretch since August, ahead of big bank earnings and key consumer sentiment events in the week ahead.

U.S. equity futures edged higher Monday, while global stocks rallied and oil prices fell, as investors braced for a critical week ahead that could define the market’s direction heading into the final months of the year.

With Wall Street still looking for clarity on stimulus heading into the teeth of the third quarter earnings season, as well as a series of events that will gauge the strength of the U.S. consumer, stocks are holding onto solid October gains, with the Dow Jones Industrial Average creeping into positive territory for the year on Friday.

However, Europe’s recent coronavirus surge, which has lead to a record high 100,000 daily cases across the Continent Sunday, serves as a reminder that the U.S. economy is almost certain to face a similar ‘second wave’ as the domestic weather cools in the coming weeks.

Without stimulus from Washington — which appears as deadlocked and

The Friday Market Minute

  • Global stocks press forward on U.S. stimulus hopes, with gains in Europe capped by a worrying surge in coronavirus infection rates.
  • House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin will resume talks Friday, with President Trump pressing for stand-alone agreements versus the Democrats preference for a comprehensive relief bill.
  • European coronavirus infections are rising at record levels in many major economies as the autumn weather turns, but leaders are hoping to avoid sweeping lockdowns in the weeks ahead.
  • Oil prices on pace for a 10% week gain on supply outages and improving demand, while the dollar tumbles to a three-week low against a basket of its global peers.
  • U.S. equity futures suggest a firmer open on Wall Street, which is looking at its best five-day stretch since August, heading into the teeth of the third quarter earnings seasons next week.

U.S. equity futures edged higher Friday, while the dollar retreated to a three-week low and oil prices slipped, as investors consolidated gains from the best week on Wall Street since mid-summer and braced for what could be a game-changing series of events in the coming days.

With markets still clinging to hopes that House Democrats and their Republican rivals in the Senate can reach an agreement on a coronavirus relief bill in the final three weeks before the November Presidential elections, the S&P 500 has gained around 2.9% so far this week, building its advance around solid corporate sales updates, progress in coronavirus vaccine development and modestly improving jobs numbers.

House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin will continue their weeks-long negotiations Friday, with President Donald Trump pressing for a series of ‘stand alone’ stimulus deals instead of the comprehensive $2.2 trillion package preferred by Democrats.

The third quarter earnings season will unofficially

(Bloomberg) — U.S. equity futures climbed after the White House appeared to shift tack and signaled the Trump administration is again leaning toward a large-scale stimulus bill. The dollar fell.

S&P 500 contracts were about 0.5% higher following news that Treasury Secretary Steven Mnuchin told Nancy Pelosi that President Donald Trump wants agreement on a comprehensive aid package. Shares in Japan dipped, while those in Australia rose. Chinese equities advanced as markets reopened after a week-long holiday. The offshore yuan climbed following a stronger-than-anticipated daily currency fixing.

The U.S. benchmark earlier closed up despite conflicting comments from Trump and Pelosi that whipsawed markets. Gains for crude oil eased as Hurricane Delta approached the already battered Louisiana coast. Treasuries ticked higher and gold climbed.

chart: MSCI gauge of global equities heads for best week since early July

© Bloomberg
MSCI gauge of global equities heads for best week since early July

Global equities are edging back toward last month’s all-time high and are having the best week since the start of July with investors increasingly betting that a Joe Biden victory in the November election and gains by Democrats in Congress will support stocks. The scenario seems to be somewhat quelling volatility even as risks from a split in government to a resurgence of coronavirus cases threaten the economic rebound. Trump’s doctor said he expects the president to safely return to public engagements by Saturday following treatment for Covid-19.


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We are seeing “an increasing probability of, let’s call it, the blue wave,” Abby Joseph Cohen, senior investment strategist at Goldman Sachs Group Inc., said on Bloomberg TV. That “might not be such a bad thing, because that would give us more certainty with regard to policy, particularly with the use of fiscal policy to help our economy at this point.”

Prospects for an agreement on a stimulus package in Washington remain uncertain

A general view of a ticker system board at the New York Stock Exchange
A general view of a ticker system board at the New York Stock Exchange

  • US futures rose, along with the decline in the dollar, after President Donald Trump signaled he may be open to piecemeal stimulus.
  • Technology and industrial stocks gained, along with energy futures, as investor risk appetite improved.
  • Treasury yields held steady ahead of weekly jobless claims. 
  • Visit Business Insider’s homepage for more stories.

US stock futures rose sharply on Thursday, pointing at an extension to the strongest daily rally in three months, after President Donald Trump signaled he is open to piecemeal stimulus, rather than a single package, fueling investor optimism that a deal may be soon in the offing.

Futures on the S&P 500, the Nasdaq 100 and the Dow Jones rose between 0.6-0.8%, lifted in part by a weaker dollar, which came under pressure from investors turning to more risk-linked assets, such as technology stocks, industrials and emerging-market currencies. 

In a tweet on Wednesday, Trump urged Democrats and Republicans to collaborate to push for a $25 billion lifeline for the airline sector, after having left the door open the previous day to sending $1,200 payments to individuals. This sent the Dow Jones up by around 530 points in its largest one-day gain in 12 weeks.

“Once again it has been changing expectations of US stimulus that have driven markets, with Wednesday’s rally coming off the back of a softened tone from the president that pointed towards the potential for a smaller, but perhaps more targeted, relief programme,” IG Group analysts said in a morning note.

Read More: A $2.5 billion investment chief highlights the stock-market sectors poised to benefit the most if stimulus is passed after the election – and says Trump ending negotiations doesn’t threaten

U.S. stock futures ticked up Thursday ahead of fresh data on the number of Americans claiming unemployment benefits, which is likely to show marginal gains as the labor market continues its halting recovery.

Futures tied to the S&P 500 climbed 0.4%, signaling muted gains for the U.S. stock market after the opening bell. This would extend the broad-market index’s rally into a second day.

Economists expect data on applications for jobless benefits, due to be released at 8:30 a.m. ET, will have ticked down to 825,000 last week, from 837,000 a week earlier. The figures are viewed as a proxy for layoffs, and will be monitored closely to assess the extent to which companies continue to reduce head count. This metric is still likely to be above pre-pandemic highs, despite dropping sharply from a peak of near 7 million in March.

“These are still high in the grand scheme of things. They’ve stabilized over the course of the last few months, but they’re also not really going down,” said Peter Dixon, an economist at Commerzbank. That will likely put additional pressure on Congress to agree on a package of coronavirus-relief measures, he said.

The S&P 500 climbed Wednesday to its highest close in over a month after President Trump tweeted his support for individual spending packages aimed at small business, airlines and delivering checks to households.

Discussions appear to remain ongoing, though Republicans and Democrats remain at odds over crucial details. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke briefly on Wednesday about a stand-alone stimulus bill for the airline industry, sending carriers’ stocks higher.

“It’s still all about stimulus at this point: we’re seeing markets move on optimism that some kind of package is going to get done,” said Esty Dwek, head of global market strategy at