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Here’s what you need to know before markets open.
1. UK unemployment hits 3-year high in August, as COVID-19 sees nearly 3 million people claim jobless benefits. UK unemployment rose to a three-year high of 4.5% in the three months to August, from 4.1% in July, according to data released by the Office of National Statistics on Tuesday.
2. China’s trade boomed in September, reaffirming the world’s second largest economy is recovering from the pandemic. China’s imports grew at their fastest pace so far this year in September, while exports continued to expand, as ongoing recovery in the world’s second largest economy fed an improvement in domestic consumption.
3. The head of SoftBank’s $100 billion Vision Fund is preparing to launch the group’s own SPAC. Rajeev Misra, the head of SoftBank’s $100 billion Vision Fund, is joining the SPAC race, as he seeks to capitalize on the trendy new investment vehicle.
4. Why the market narrative on a November ‘blue wave’ flipped in just 2 weeks and what it means for stocks, according to UBS. Throughout 2020, the consensus view has been that a Joe Biden victory and a “blue wave” in November would be bad for the stock market because of the potential for higher corporate taxes and more regulation. But that market narrative has been flipped on its head in the past two weeks, UBS said in a note on Monday.
Video: ‘Very strong economic recovery’ coming for the U.S., asset manager says (CNBC)
5. Global stocks are mixed. Most Asian stocks closed slightly higher, European stocks are down between 0.2-0.4%. Dow 30 and S&P 500 futures are pointing to a lower open, while Nasdaq futures are up around 0.9%.
6. Earnings coming in. Johnson & Johnson’s Q3 20 and JPMorgan’s Q3 20 earnings are coming in.
7. On the economic front. The US API Weekly Crude Oil Stock and US NFIB Business Optimism Index are due.
8. A $2 billion fund manager says market volatility is here to stay for the long-term. He breaks down his best recommendations for the new normal — including 4 of his favorite stocks. With the election approaching, uncertainty lingering around the timing and scale of additional fiscal stimulus, and a potential second wave of COVID-19 threatening the economic recovery, you’d be hard pressed to find anyone on Wall Street who doesn’t share the assessment that equity markets are going to be highly volatile in the near-term.
9. The global investment strategist at a $44 billion ETF shop explains why the pandemic-fueled boom of online retail is set to accelerate — and shares 5 stocks to watch other than Amazon ahead of its Prime Day. Ahead of Prime Day, Amazon’s annual marquee shopping event on Tuesday, Simeon Hyman wants investors to think about the accelerating long-term trend of online retail.
10. Deutsche Bank scoured 200 years of US history to uncover how investors should handle a contested election — including 3 past examples and how markets responded. Investors typically expect the month before the US election to bring volatility to the stock market. But some analysts are predicting that volatility could continue days and weeks after election day, if the result wasn’t immediately clear.