Morning Dose: Fed Tone Key Today Amid PMI Signal
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome to The Morning Dose – Everything You Need to Know Before the Market Opens. The market seems to be taking a breather today after yesterday’s record highs led by mega-cap tech stocks. U.S. equity futures are indicating a flat open, setting the stage for a potentially calmer trading day.
Overnight Headlines
Key Fed speakers, Chair Powell and Governor Bowman, are scheduled to speak today following last week’s rate cut. Markets will closely analyze their statements for hints on future monetary policy direction.
Economic Announcements
Today’s economic calendar includes the Q2 Current Account Balance and the preliminary S&P Global PMI numbers for September at 9:45 AM Eastern. The PMI data will provide crucial insights into the health of the manufacturing and services sectors, particularly in comparison to weak European manufacturing numbers.
Earnings Highlights
Micron, the most anticipated report of the week, reports after the bell, with high market expectations. Conversely, AutoZone’s earnings miss is impacting its pre-market performance.
Top Movers
- Kenvue (TYL): Up over 4% on positive news refuting claims linking Tylenol to autism during pregnancy.
- CoreWeave (CWE): Received a double upgrade with strong analyst support, indicating favorable prospects.
- Amazon (AMZN): Involved in a lawsuit against a New York labor law, highlighting ongoing regulatory challenges for big tech.
- Boeing (BA): Up roughly 3% due to significant aircraft orders, signaling positive market sentiment.
- Lululemon (LULU): Downgraded by Robert W. Baird to Neutral from Outperform, emphasizing the importance of valuation considerations.
Quick Trade Ideas
Watch the chip sector closely ahead of Micron’s earnings report, track early momentum in Kenvue and Boeing, and pay specific attention to the 9:45 AM PMI data release for potential market-moving signals.
Key Takeaway
Today’s market outlook suggests a cautious approach. Monitor key sectors and individual movers for early signals, and keep a close eye on the upcoming PMI data, which could dictate market direction following recent record highs.