Markets Flat As COVID-19 Dominates The Headlines
Be on the watch for a late-week rally as strong Q3 GDP figures trump COVID-19 headlines.
This morning’s action has been slower than yesterday, with sentiment still negative. At the halfway point of the trading day, the DJIA DOW (-146), S&P 500 SPX (-5), and NASDAQ (+56) are all slightly in the red. Unfortunately, it looks like the much-anticipated second wave of COVID-19 is well underway.
On the economic news front, the Durable Goods Orders for September have been released to the public. Here’s a quick look at the highlights:
Event Actual Projected Previous
Durable Goods Orders (Sept.) 1.9% 0.5% 0.4%
Durable Goods Orders Except for Defense (Sept.) 3.4% 0.2% 0.9%
This collection of figures is decisively positive. Durable Goods Orders came in well up from August and is a preview of Thursday’s Q3 GDP figures.
For U.S. stocks, the news has brought sellers to the market as investors manage risk amid the second wave of COVID-19.
COVID-19 Contagion Expands
The past seven days have been historically bad on the COVID-19 front. Global cases have expanded dramatically, with the contagion negatively impacting sentiment.
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Overview: From a technical standpoint, the weekly chart above shows the uptrend in December E-mini S&P 500 futures. Even though prices are down this week, they remain very much in bullish territory. The key number in this market is the Weekly SMA at 3349.00; if we see a close above this level, be on the watch for a late-week rally as strong Q3 GDP figures trump COVID-19 headlines.
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