Morning Dose: UNH Tanking, Tech Rebound Trade Plays & Volatility Ahead
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Futures are mixed this morning, with the big news being UnitedHealth (UNH) plummeting 20% pre-market due to disappointing earnings and guidance. Although this is dragging down the Dow, there’s a silver lining as S&P and Nasdaq futures are showing gains, especially in the tech sector trying to recover from recent losses.
Overnight Headlines
- Positive trade news with ‘big progress’ between the US and Japan, as tweeted by Trump, possibly influencing market sentiment.
Economic Announcements
Key economic data dropping at 8:30 ET includes housing starts, building permits, and jobless claims. Additionally, the rise in the 10-year yield may cause tech stocks to face more pressure.
Earnings Highlights
- American Express (AXP) slightly beat expectations, while Taiwan Semiconductor (TSM) exceeded forecasts and raised guidance.
- Other companies like CSX, D.R. Horton, and Alcoa reported mixed results.
Top Movers
Asian markets are mostly up, but European markets are declining ahead of the ECB rate cut announcement. Trade uncertainty discussions by ECB President Lagarde might be contributing to the negative sentiment.
Quick Trade Ideas
- Consider looking into Taiwan Semiconductor (TSM) for potential buying opportunities post-guidance raise.
- Avoid engaging in healthcare-related stocks today due to UNH’s significant impact on the sector.
Key Takeaway
Stay vigilant and monitor the VIX closely for potential market volatility. Prepare for possible significant price swings throughout the trading day to mitigate risks.