Morning Dose: Market Chaotic as Futures Halted
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. This morning, trading faces uncertainty as equity futures are halted due to a technical issue at CME Group’s data center. Despite a positive backdrop, the market is expected to open volatile and choppy without pre-market price discovery.
Overnight Headlines
- CME Group reports a cooling failure, halting S&P, Nasdaq, and Dow futures trading.
- Chinese companies leveraging NVIDIA chips for AI models, while OpenAI’s data partners maintain significant debt.
Economic Announcements
No major economic announcements reported.
Earnings Highlights
- Tilray (TLRY) down over 12% following one-for-ten reverse stock split implementation.
- Boeing (BA) secures a significant defense contract worth nearly $4.7 billion.
- Starbucks faces prolonged strikes as more union baristas join, impacting operations and P.R.
Top Movers
- CME Group stock down around 0.7% pre-market due to technical issues.
- Comcast rumored to consider a higher bid for Warner Bros. Discovery.
Quick Trade Ideas
Watch for market consolidation with ‘cautious optimism.’ Key levels to monitor:
- SPY: Support at 680, resistance at 685.
- QQQ: Support at 615, resistance at 620.
The VXX is stable, indicating a plumbing problem over panic-driven selling.
Key Takeaway
Traders should focus on the restart of CME futures trading to gauge market sentiment. Let initial chaos subside before making trading decisions. The overall bullish narrative remains, but caution is advised given the current technical challenges.