Morning Dose: Market Alert Fed Day Risks & Housing Surge
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Good morning traders! Today is September 17th, and all eyes are on the Federal Reserve as we await their decision. The market seems to be in a holding pattern, with futures slightly lower but relatively flat.
Overnight Headlines
- NVIDIA: China advising tech companies to halt NVIDIA chip purchases.
- Apple: Decline in iPhone sales reported in China.
- General Mills (GIS): A solid earnings beat with reaffirmed guidance.
Economic Announcements
This morning, we have data on August housing starts and building permits, with notable strength in the weekly MBA Mortgage Applications Index showing a significant increase.
Earnings Highlights
General Mills (GIS): Beat EPS, in-line revenues, and reiterated full-year guidance. Stock flat.
Top Movers
- New Fortress Energy (NFE): Soaring over 44% on a major LNG supply agreement.
- Diversified Energy (DEC): Down about 7% on a secondary offering.
Quick Trade Ideas
- Workday (WDAY): Upgraded by Guggenheim and Piper Sandler.
- FedEx: Downgraded ahead of earnings report.
- Eli Lilly: Downgraded to ‘Hold’ from Berenberg.
Key Takeaway
As we approach the Fed decision, maintain a cautiously bullish stance but stay agile. Look for selective long setups in strong sectors like energy and consumer discretionary. Stay alert and manage risk with tight stops.
Trade Watchlist
Watch AVAV for continuation and monitor the volatility in NVIDIA following the China news. Keep stops tight and be prepared for swift market moves post-Fed announcement.