Morning Dose: Inflation Data Sparks Market Tension
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. Today we are focusing on key market events including inflation data, bank earnings, and geopolitical developments. Traders are holding their breath ahead of the CPI release.
Overnight Headlines
- CPI Data: Market waiting for December CPI print, consensus at 0.3%. Potential impact on Fed rate cut expectations.
- Earnings Season: JPMorgan Chase reported mixed results, while Delta Air Lines faces investor disappointment despite beating expectations.
- Geopolitical Tensions: Pentagon presents Iran options to President Trump, potential tariffs on countries dealing with Iran. Crude oil up over 1%.
Economic Announcements
The most critical catalyst of the day is the CPI data release at 8:30 a.m. Traders are closely watching for any surprises that could influence Fed rate cut projections.
Earnings Highlights
JPM (JPMorgan Chase) reported mixed earnings, beating adjusted expectations but missing headline EPS estimates. Stock trading slightly up.
DAL (Delta Air Lines) saw a negative market reaction despite beating earnings and revenue targets. Stock down around 5% pre-market.
Top Movers
LHX (L3Harris) is up over 12% as defense stocks gain traction amid geopolitical tensions. On the downside, TVTX (Travere Therapeutics) is down 27%, highlighting the risk in the biotech sector.
Quick Trade Ideas
Traders should focus on key support levels like 694 on SPY and 625 on QQQ. Watching for breakout opportunities but exercise caution amid potential volatility post-CPI release.
Key Takeaway
Exercise patience and avoid chasing initial market moves post-CPI data release. Watch support levels closely and assess market sentiment before making trading decisions.