Morning Dose: Trade Turmoil Tariffs Hit Legal Snag, Futures Slide
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Good morning traders and welcome to The Morning Dose – Everything You Need to Know Before the Market Opens. It’s Tuesday, September 2nd, and we’re starting the month in the red after a fantastic August. Futures are pointing to a lower open across the board.
Overnight Headlines
The market mood is risk-off as S&P futures are down about 53 points, Dow futures off by nearly 300. The primary driver is the uncertainty surrounding tariffs with a federal appeals court ruling most of President Trump’s tariffs illegal, but they remain in effect until at least October 14th due to ongoing legal proceedings.
Economic Announcements
Market focus is on the Fed, with gold hitting record highs as expectations for a rate cut at the September 17th meeting soar with a 91.8% probability priced in.
Earnings Highlights
- Kraft Heinz (KHC): Board approved a split into two companies for shareholder value.
- Meta: Dealing with controversies over AI chatbots impacting the stock.
- Signet Jewelers (SIG): Impressive earnings beat driving the stock higher.
- Tesla: Concerns over China-made vehicle sales performance compared to competitors reflected in pre-market trading.
Top Movers
- Spirit Airlines (FLYY): Down almost 46% seeking bankruptcy protection.
- Cytokinetics (CYTK): Up over 32% on positive news.
- Air Lease (AL): Up over 5% on acquisition news.
- Frontier (ULCC): Gapping up almost 9% after an upgrade to Buy from Hold.
Quick Trade Ideas
Watch key support levels for SPY and QQQ as market coiling indicates potential moves. Monitor tech sector XLK for signs. Be nimble in a trader’s market amid conflicting signals from tariff uncertainty and Fed rate cut expectations.
Key Takeaway
Stay cautious as the market faces uncertainties with tariffs and upcoming economic data releases. Focus on ISM Manufacturing report as it could be a significant market-moving event.