Morning Dose: Fed Rate Cut Fading Fast, Tech Winners Clash
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood:
Futures are pointing to a slightly lower start this morning, reflecting a split personality in the market with the DOW hitting a record high while big tech names showed weakness. The government shutdown ended, but market focus shifts to economic data and Fed rate cut expectations.
Overnight Headlines:
- Government Shutdown: President Trump signed a bill to fund operations through January 30th.
- Fed Rate Cut Odds: Expectations dropping fast, with just a 53 percent chance of a cut in December.
Economic Announcements:
No specific economic announcements mentioned in the briefing.
Earnings Highlights:
- Cisco (CSCO): Beat EPS expectations, provided strong guidance, stock up over 6%.
- Disney (DIS): Beat on EPS but missed on revenue, stock down about 4%.
Top Movers:
- Mersana Therapeutics (MRSN): Up over 200% due to acquisition by Day One Biopharmaceuticals.
- Sealed Air (SEE): Jumping over 20% on buyout rumor.
- Korro Bio (KRRO): Plunged nearly 80% on workforce reduction and executive resignation.
Quick Trade Ideas:
Watch semiconductors and healthcare for strength, be cautious of energy sector, monitor Disney for buying opportunities, and anticipate market reaction to the upcoming CPI report.
Key Takeaway:
Market sentiment is cautiously bullish with a focus on sector rotation, key levels, and upcoming economic data. Traders should consider the shifting landscape of mega-cap tech weakness and value sector strength when making trade decisions.