Morning Dose: December Dive Markets React to Fed Uncertainty
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Good morning and welcome to The Morning Dose – Everything You Need to Know Before the Market Opens. The market is currently in a “risk-off” mood, with futures pointing to a significantly lower open following the end-of-month optimism.
Overnight Headlines
- Asia and Europe experienced weakness, with Japan’s Nikkei down almost two percent, and Germany’s DAX down over one and a half percent.
- Global manufacturing data showed underwhelming readings across China, Japan, and Europe, pointing to continued slowdown and impacting market sentiment.
Economic Announcements
Eyes will be on the S&P Global Manufacturing PMI at 9:45 Eastern and the ISM Manufacturing Index at 10:00 to gauge the U.S. factory sector performance.
Earnings Highlights
- Chinese EV makers NIO, XPEV, and Li Auto reported delivery numbers, but stock performance is mixed due to various factors including downgrades.
- Chevron (CVX) received an upgrade to Buy with a $169 price target, while TotalEnergies (TTE) was downgraded to Hold, reflecting selective analyst sentiment in the energy sector.
- Tesla (TSLA) faced pressure as European sales declined in some markets.
Top Movers
The broader market shows a cautiously bearish sentiment, with key levels to watch for SPY and QQQ as well as a spike in the VIX (VXX) indicating rising anxiety among investors.
Quick Trade Ideas
- SPY: Support at 677, Resistance at 679.50
- QQQ: Support at 612, Resistance at 615
Key Takeaway
Be nimble and cautious in trading decisions today due to global growth fears and Fed uncertainty. Pay close attention to manufacturing data and technical levels for a clearer market direction.