Next Day Prep: Fed-Driven Rally Roars Consumer Growth Explodes
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome traders to Next Day Prep – What We Are Watching Tomorrow. The bulls had a strong day with the market hitting record highs, showcasing broad-based strength across sectors.
Overnight Headlines
- S&P 500 (SPX): Hit a new closing high at 6,502 with most sectors in the green, indicating a strong rally.
- Fed Expectations: Market now pricing in a 97.4% chance of a rate cut in September due to soft economic data.
Economic Announcements
- ADP Employment Report: Showed softer than expected results.
- ISM Services Index: Displayed accelerating activity but contracting employment, supporting rate cut expectations.
Earnings Highlights
- Consumer Discretionary: Led by Amazon, with American Eagle (AEO) soaring nearly 38% post-earnings, highlighting sector resilience.
- Ciena (CIEN): Surged over 23% on strong quarterly results, focusing on AI infrastructure.
Top Movers
- Tech Space: ASML and Monolithic Power Systems (MPWR) showing strong upward momentum.
- Google: Breaking out and pushing through resistance levels.
Quick Trade Ideas
- Continuation Watchlist: Consider ASML for further upside and MPWR for entry opportunities.
- Anticipation Setups: Watch for moves in HubSpot (HUBS) and Insmed (INSM) as well as continued strength in Google and MongoDB (MDB).
Key Takeaway
Keep an eye on trading volume, support levels for SPX and QQQ, and monitor rate cut expectations for market direction. Stick with strong sectors like tech and consumer discretionary.