First Call June 30, 2020

  • S&P futures up 0.1% near the best levels. Asian markets higher overnight with Australia and Japan the big gainers. European markets weaker with Italy and Spain among the laggards. Treasuries unchanged to slightly firmer following a bullish steepening move. Dollar stronger on the major crosses. Gold up 0.1%. WTI crude down 1.2% after gaining more than 3% in the prior session. WTI Crude has a new upside DeMark Sequential Sell Countdown 13. See below
  • Game Plan: The much talked about huge pension rebalance today has not seen the selling as expected and there is a possibility of late-day fireworks. Powell and Mnuchin will be speaking today hoping to keep the game going. S&P 3000/3100 range expected. Watch the Chicago PMI out at 9:45 am ET although it leaks at 9:42 am ET. This could be a good preview for tomorrow’s ISM. Wednesday and Thursday will be jammed with a lot of economic data.
  • Coronavirus continues to dominate the headlines with the focus on more states pausing their reopening plans, testing capacity issues, and new targeted lockdowns in Australia and Britain. Nothing incremental from Fed Chair Powell in his prepared remarks for House testimony aside Mnuchin today. China official manufacturing and services PMIs surprised to the upside. Japan’s industrial output fell for the fourth straight month while South Korea’s industrial production fell for a fifth straight month. China formally adopted national security legislation for Hong Kong. The US suspended regulations allowing special treatment for Hong Kong. IRS said it won’t extend the tax deadline again. Biden told donors he is going to get rid of most of Trump’s tax cuts. Multiple reports said White House was aware of Russian bounties on US soldiers.
  • WFC confirmed it expects to cut its dividend. Norwegian Air to cancel the order for BA 737 MAX and Dreamliner jets. MU beat and raised with analysts focused on favorable data centers and mobile trends. LULU to acquire in-home fitness name Mirror for $500M, with sell-side takeaways positive on the deal, though some flagged it as a negative for PTON. UBER in talks to acquire Postmates for $2.6B. SPG~ said it has reopened most of its US retail properties and tenants have fared better than expected. XLNX positively preannounced, citing strength in the data center and 5G infrastructure, along with pull-ins from US trade restrictions. JEF beat with FICC a standout. RDS.A said it will write down up to $22B.

market snapshot

key market sentiment

premarket movers

s&P and nasdaq futures charts

15 min charts shows late day push higher in last 30 minutes 3060/3020 range for today

Not much of a change on daily with 3000/3100 range

Crude with new Sequential sell Countdown 13

hedge fund telemetry institutional options flows