Morning Dose: Tech Crush Signals Risk-Off Morning
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Person1: Welcome to The Morning Dose – Everything You Need to Know Before the Market Opens. It feels like we’re nursing a bit of a hangover from yesterday’s tech wreck, doesn’t it?
Person2: That’s the perfect way to put it! Futures are tracking modestly lower, and there’s definitely a sense of caution in the air. Yesterday’s action was… well, it was a major tell.
Overnight Headlines
Person1: So it’s a “sell the news” environment. We saw some pretty sharp drops overnight in Asia to back that up, with Japan’s Nikkei down two and a half percent and South Korea’s Kospi tumbling almost three percent.
Person2: Yeah, both of those markets are pulling back hard from record highs. Europe is also looking mostly lower. There’s just a risk-off feel globally to start the day. Traders are on edge.
Economic Announcements
Person2: The big one is the ADP Employment Change report for October. That’s going to give us a really important read on the labor market ahead of the main event later this week.
Earnings Highlights
Person1: Let’s get into the earnings avalanche. The big story seems to be Advanced Micro Devices (AMD). It looks like a repeat of the Palantir story!
Person2: It really does! AMD beat on earnings per share, beat on revenue, and even guided fourth-quarter revenue above what analysts were expecting. And how does the market reward them? The stock is down over five percent in the pre-market!
Top Movers
- Biohaven: down forty-three percent after FDA setback
- Trex Company: down thirty-four percent on poor earnings and guidance
- Pinterest: down over seventeen percent
- Kennedy Wilson: up more than twenty-four percent after buyout proposal
- Lumentum: up sixteen percent on strong report
Quick Trade Ideas
Person1: For the S&P 500, watch 670 as critical support and 675 as resistance. For the QQQ, look at 616 support and 619 resistance.
Key Takeaway
Person2: The market is in a “prove it” mood. Great earnings are not enough. Watch that ADP data closely and see if buyers defend key support levels. It’s going to be a very telling session.
Person1: A “prove it” day indeed. Have a great trading day, everyone.