Morning Dose: Trade War Optimism Fizzles as Tariff Talks Jolt Markets
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. Futures are pointing higher, indicating a dose of optimism brewing this morning. Trade war de-escalation hopes are lifting the market sentiment.
Overnight Headlines
- Trump’s Truth Social post on the 80% tariff on China created some uncertainty.
- S&P futures up 21 points, Nasdaq up 85, and Dow adding 111.
Economic Announcements
No data releases today, but expect a deluge of Fedspeak on tariffs, inflation, and unemployment which may impact market mood.
Earnings Highlights
- AFF (Affirm) beat on earnings but had in-line revenue.
- LYFT (Lyft) missed on both earnings and revenue.
- EXPE (Expedia) beat but issued weak guidance due to travel sector woes.
- NET (Cloudflare) beat on revenue but guided lower on EPS.
Top Movers
- Asia: Nikkei up, Shanghai Composite down.
- Europe: Mostly green with British Airways owner IAG swinging to profit amid trade optimism.
Quick Trade Ideas
With tech and consumer discretionary sectors showing strength, look for volume-backed momentum plays. Be cautious due to tariff uncertainty. Consider trade setups only with solid volume confirmation.
Key Takeaway
Monitor gapping stocks like CRVS, TMDX, GDOT on the rise, and IOVA, WOLF, ORGO falling significantly for potential trade opportunities. Stay nimble in the volatile market environment.