Morning Dose: Japan Trade Deal Fuels Market Surge
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Futures are pointing to a higher open this morning, led by optimism surrounding the U.S. and Japan trade deal. The market sentiment is cautiously bullish, with clear signs of sector rotation and mixed performance.
Overnight Headlines
- U.S.-Japan Trade Deal: President Trump announces a 15% tariff on Japanese imports, boosting market clarity. Japan commits to investing $550 billion in the U.S. economy, leading to a surge in Japan’s Nikkei index.
- E.U. Tensions: Reports indicate potential E.U. tariffs on U.S. goods, creating a give-and-take dynamic in trade negotiations.
Economic Announcements
The MBA Mortgage Applications saw a slight increase of 0.8%, with focus now shifting to Existing Home Sales for June. Analysts expect a modest decline, potentially impacting homebuilders.
Earnings Highlights
- Winners: Lennox International (LII) and GE Vernova (GEV) beat earnings expectations significantly, while Capital One Financial (COF) impresses with its domestic charge-off rate improvement.
- Losers: AT&T and Hilton (HLT) face market scrutiny over mixed guidance. Texas Instruments (TXN) experiences a steep decline despite meeting expectations, signaling tech sector caution.
Top Movers
- Gainers: Abivax (ABVX) skyrockets over 400% on positive Phase 3 results.
- Losers: Texas Instruments (TXN) leads the decline, along with Enphase Energy (ENPH) after disappointing Q3 revenue guidance.
Quick Trade Ideas
Consider tracking Lennox International (LII) for potential continuation based on its strong earnings performance amidst market volatility.
Key Takeaway
The market mood is cautiously bullish post U.S.-Japan trade deal, but watch for sector rotation and tech weakness. Focus on relative strength, monitor key levels, and navigate the market with agility.