Morning Dose: Futures Hint Higher Open on Trade Talks & Musk-Trump Drama
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Good morning, traders, and welcome to The Morning Dose – Everything You Need to Know Before the Market Opens. The market seems poised for a higher open this Friday with futures on the S&P 500 (SPY) trading about 21 points above fair value. Despite yesterday’s volatility driven by trade headlines and tensions between Trump and Tesla (TSLA) CEO Elon Musk, today is showing early gains signaling a more positive start.
Overnight Headlines
- Reserve Bank of India cuts policy rate by 50 basis points
- Positive revision to Eurozone Q1 GDP
- Weak Industrial Production figures from Germany and France
Economic Announcements
The May Employment Situation report, due at 8:30 AM Eastern, is expected to reveal around 130,000 nonfarm payrolls with the unemployment rate likely to hold at 4.2%. Treasuries are currently showing slight gains.
Earnings Highlights
- Broadcom (AVGO): Beat Q2 EPS expectations and issued above-consensus revenue guidance
- DocuSign (DOCU): Beat Q1 expectations but facing a significant drop post lower billings guidance
- Lululemon (LULU): Down over 20% pre-market despite beating Q1 EPS expectations
- Petco (WOOF): Missed Q1 EPS expectations
Top Movers
Top Gainers: NX +12.3%, ODC +8.9%
Top Losers: IOT -13.1%, TTAN -10.2%, BRZE -8.6%, WOOF -7.7%
Quick Trade Ideas
- SPY: Support at 590 and 592, Resistance at 596 and 598
- QQQ: Support at 525 and 526, Resistance at 528 and 530
Key Takeaway
While futures indicate a positive open, caution is advised due to recent volatility and weak earnings guidance. Focus on stocks with strong support levels like Technology and Financials. Monitor the employment report closely for directional cues and consider tighter stops for trades.