Morning Dose: Market Insight Rate-Cut Winners, Big Tech Pause
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Good morning traders! The market is starting off flat after record-setting sessions. Traders are awaiting the Producer Price Index (PPI) data to set the tone for the day.
Overnight Headlines
- Reports indicate optimism for a September interest rate cut following the CPI report.
- Market sees a rotation with smaller stocks and lagging sectors gaining strength.
Economic Announcements
Key economic data includes PPI release with expectations of a positive reading and weekly jobless claims to monitor closely for market impact.
Earnings Highlights
- CSCO (Cisco): Beat on earnings but down in pre-market trading.
- DE (Deere): Disappoints despite beating on EPS and revenue.
- DDS (Dillard’s): Impressive beat on expectations with rising store sales.
- AAP (Advance Auto Parts): Strong report exceeding forecasts and reaffirming guidance.
Top Movers
Winners: DLO (dLocal) up 26% on earnings beat and raised revenue guidance.
Losers: IBTA (Ibotta) down 35% after revenue miss and downgrades. COHR (Coherent) down nearly 20% due to business sale announcement.
Quick Trade Ideas
Focus on cyclical sectors and small to mid-cap stocks. Use key support levels for risk control.
Key Takeaway
Stay cautious amid stretched valuations. Watch for continued rotation, monitor support and resistance levels, and consider stocks like AMZN (Amazon) and SOUN (SoundHound) as potential plays.