Next Day Prep: Firehose of Data Sparks Rate Cut Reversal
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
The market experienced three consecutive down days as strong economic data raised doubts about aggressive rate cuts. Fed uncertainty and mixed messages from officials added confusion, leading to broad market weakness.
Overnight Headlines
- Initial jobless claims lower than expected
- Q2 GDP revised up to 3.8%
- Durable goods orders surpass expectations
Economic Announcements
The focus is on the upcoming PCE Price Index, a key inflation gauge that could sway rate cut expectations based on the reading.
Earnings Highlights
- CarMax (KMX) plummeted 20% due to poor earnings and revenue
- Accenture and Jabil beat expectations but sold off amid market punishment
Top Movers
- Energy sector saw gains, while Health Care, Consumer Discretionary, and Materials suffered losses
- Intel surged nearly 9% on potential investment from Apple
- Oracle dropped over 5% despite involvement in the TikTok deal
Quick Trade Ideas
- Watching strength in semiconductors like TSM and ASML
- Staying tactical with levels at SOXL 33.50 and IBM 282
- Keeping an eye on potential moves in crypto-adjacent names while avoiding laggards
Key Takeaway
The market faces uncertainty amid strong economic data, Fed indecision, and upcoming inflation metrics. Traders should focus on select sectors like semiconductors and energy while remaining cautious in the current market climate.