Morning Dose: Rate Cut Locked, Inflation Looms
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Good morning! Equity futures are pointing to a modestly higher open, aiming to kick off the week positively after a mixed finish on Friday. The market is looking optimistically towards a 25-basis point rate cut in September, following soft labor market data from last week.
Overnight Headlines
- Asia and Europe markets showing positivity, mirroring the optimistic sentiment of the U.S. futures.
- Individual movers in pre-market include Planet Labs (P-L), beating estimates, and New Fortress Energy (N-F-E), witnessing a significant decline.
Economic Announcements
- Focus on inflation data this week with the Producer Price Index (PPI) on Wednesday and the Consumer Price Index (CPI) on Thursday.
Earnings Highlights
- Planet Labs (P-L) beats on earnings and revenue with positive third-quarter guidance, while New Fortress Energy (N-F-E) misses estimates substantially.
Top Movers
- Rapport Therapeutics (R-A-P-P) surges 165% on positive Phase 2 trial results, while Summit Therapeutics (S-M-M-T) drops over 20% based on clinical trial data.
Quick Trade Ideas
- AppLovin (A-P-P) and Robinhood (H-O-O-D) to join the S&P 500, driving their stock prices up significantly.
- PNC confirms acquisition of FirstBank, expanding their presence strategically.
Key Takeaway
Market sentiment is cautiously bullish, anticipating forthcoming inflation data to influence the path of rate cuts. Traders should monitor technical levels closely and be prepared for potential shifts in narrative later this week.