Morning Dose: Fed Watch Market Anticipation Peaks Pre-Powell
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Person1: Good morning and welcome to The Morning Dose – Everything You Need to Know Before the Market Opens.
Person2: Good morning! It feels like the market is holding its breath today.
Person1: Totally. Futures are pretty muted, just hovering. It seems like all eyes are on one thing: Fed Chair Powell’s speech at Jackson Hole this Friday.
Person2: Absolutely. It’s the classic “calm before the catalyst.” No one wants to make a big bet until they hear from the Fed. The market is pricing in an 83% chance of a rate cut in September.
Overnight Headlines
Person1: Europe is trading higher, but Asia was mostly down. SoftBank’s two billion dollar investment in Intel is giving the chip sector a lift this morning.
Person2: Geopolitical tensions concerning Ukraine and Russia are being overshadowed by market focus on Powell and domestic earnings.
Economic Announcements
Person1: Housing Starts and Building Permits data at 8:30 could cause some market volatility.
Earnings Highlights
- Home Depot missed on earnings per share but reaffirmed full-year guidance.
- Medtronic beat on earnings and revenue, raised guidance above expectations, and announced shareholder value initiatives.
- Palo Alto Networks reported strong earnings growth, with the founder and CTO retiring.
Top Movers
- NVIDIA developing a superior chip for China to comply with U.S. restrictions.
- Strong demand in China for Tesla‘s Model Y L vehicle.
Quick Trade Ideas
Watch for potential breakout or breakdown in the S&P 500 and Nasdaq as energy builds. Focus on resistance at 643.28 for SPY and 576.70 for QQQ.
Rotation into technology and financial sectors noted, with increased risk appetite.
Key Takeaway
Sentiment cautiously bullish with Powell’s speech looming. Focus on strong tech and retail names for trading opportunities but be cautious with position sizes. Monitor Housing Starts and Building Permits data for potential market impact.