Morning Dose: Nervous Optimism Jackson Hole Worries & Tech Turmoil
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. It’s Friday, August 22nd, and the market is on pins and needles. All eyes are on Jackson Hole.
Overnight Headlines
- Fed Chair Powell’s Speech: Scheduled for 10 AM Eastern today, futures are showing optimism but with a dose of nervousness.
- Tech Sector Pressure: Semiconductors, including NVIDIA, feeling the heat amidst geopolitical tensions.
Economic Announcements
Rate cut expectations for September have cooled, with the probability dropping to around 71.5%. All eyes on Powell’s tone regarding future moves.
Earnings Highlights
- Intuit: Stock taking a hit pre-market despite beating earnings, as next quarter’s revenue guidance falls short.
- Workday: Down about 4% post-earnings on acquisition news, reflecting market uncertainty.
- Zoom Communications: Up over 5% on a strong earnings report and optimistic guidance.
Top Movers
- Meta Platforms & Google: Announced a significant ten-billion-dollar cloud deal, boosting Google’s cloud division.
- Starbucks: Progressing with the potential sale of its China unit, with offers expected soon.
Quick Trade Ideas
Watch support levels for SPY at 635 and resistance at 640. For QQQ, keep an eye on support around 564 and resistance at 570.
Key Takeaway
With market sentiment fragile ahead of Powell’s speech, consider a defensive stance, monitor resilient sectors like energy, and be cautious of volatility spikes. Avoid chasing breakouts until post-announcement momentum is clear.