Morning Dose: Oil Prices Rebound Amid Iran Uncertainty
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 Monday, June 23rd, and futures are looking a tad soft this morning. Market sentiment is cautious due to weekend developments in the Middle East, particularly the U.S. strike on Iranian nuclear facilities.
Overnight Headlines
- Equity futures initially slumped on the news but rebounded, indicating hope that the situation won’t escalate into a broader conflict.
- Oil prices surged briefly but have since stabilized around $74.73 a barrel.
- Asian markets were mixed, with Japan down slightly and Hong Kong and China up.
Economic Announcements
Europe is mostly lower, with the Eurozone’s Manufacturing PMI below expectations while Services PMI met expectations. In the U.S., key support and resistance levels for the SPY and QQQ are being closely watched for potential breakout or consolidation patterns.
Earnings Highlights
- FactSet (FDS) reported mixed Q3 earnings, with a slight miss on EPS but reaffirmed guidance.
- Exelixis (EXEL) surged 27.6% on positive Phase 3 trial data.
Top Movers
In pre-market moves, Tesla (TSLA) is up, while Super Micro Computer (SMCI) is down after announcing a significant financing plan.
Quick Trade Ideas
- Focus on sectors showing strength like energy and consumer discretionary, while being cautious with tech and communication services.
- Watch for reactions to today’s PMI data to gauge market momentum.
Key Takeaway
Market sentiment is cautiously bearish with mixed signals. Traders should stay nimble, use tight stops, and pay close attention to key technical levels and incoming data to navigate the current landscape effectively.