Headline News: Equity futures point to a higher open this morning in the wake of yesterday’s tech-led rally that sent the major averages to fresh record highs. A large semiconductor company was a key driver of the action, rising nearly 5.0% as investors reacted to a slate of announcements from the company’s GPU Technology Conference. The stock is up another 4.0% in the pre-market. Several meg-cap names will report their earnings this afternoon. Investors are currently digesting another sizable batch of earnings reports before the open. The market also eagerly anticipates a decision from the FOMC at 2:00 p.m. ET, widely expected to result in another 25-basis-point rate cut. The MBA Mortgage Applications Index for the week ended October 25 increased 7.1%, from a prior decrease of 0.3%. (Michael Gibbs, Managing Director, Lead Portfolio Manager ) Markets: The S&P 500 sold off sharply, closing lower at 6,822.34 and holding just above the support level at 6,807.11. The RSI index also moved lower, confirming the market’s weakness. However, after the close, Amazon (AMZN) reported earnings that exceeded expectations, sending S&P 500 futures up by 0.77% ahead of the open. We expect the potential resistance at 6,902.34 to hold if tested today. We… Read More
Headline News: Equity futures point to a higher open this morning in the wake of yesterday’s tech-led rally that sent the major averages to fresh record highs. A large semiconductor company was a key driver of the action, rising nearly 5.0% as investors reacted to a slate of announcements from the company’s GPU Technology Conference. The stock is up another 4.0% in the pre-market. Several meg-cap names will report their earnings this afternoon. Investors are currently digesting another sizable batch of earnings reports before the open. The market also eagerly anticipates a decision from the FOMC at 2:00 p.m. ET, which is widely expected to result in another 25-basis-point rate cut. The MBA Mortgage Applications Index for the week ended October 25 increased 7.1%, from a prior decrease of 0.3%. (Michael Gibbs, Managing Director, Lead Portfolio Manager ) Markets: The S&P 500 slipped to 6,890.59 after Federal Reserve Chair Jerome Powell refrained from signaling additional interest rate cuts. Markets had been looking for clearer guidance suggesting at least two reductions before year-end. The 10-year Treasury yield rose to 4.10%, reflecting a cautious reassessment of policy expectations and adding pressure to an already overbought equity market. With sentiment vulnerable to profit-taking, short-term… Read More
Headline News: Equity futures point to a higher open this morning in the wake of yesterday’s tech-led rally that sent the major averages to fresh record highs. A large semiconductor company was a key driver of the action, rising nearly 5.0% as investors reacted to a slate of announcements from the company’s GPU Technology Conference. The stock is up another 4.0% in the pre-market. Several meg-cap names will report their earnings this afternoon. Investors are currently digesting another sizable batch of earnings reports before the open. The market also eagerly anticipates a decision from the FOMC at 2:00 p.m. ET, widely expected to result in another 25-basis-point rate cut. The MBA Mortgage Applications Index for the week ended October 25 increased 7.1%, from a prior decrease of 0.3%. (Michael Gibbs, Managing Director, Lead Portfolio Manager ) Markets: The S&P 500 rallied to a new intraday all-time high of 6,911.30 before sellers stepped in, leaving the index to close slightly lower at 6,890.89, still marking a new closing high. The RSI continues to trend higher but has yet to confirm a new high, suggesting some loss of momentum. With the FOMC interest rate decision due later today, a mild pullback would not… Read More
Headline News: Equity futures point to a slightly higher open this morning, following yesterday’s action that saw mega-cap and tech names push the major averages to fresh record highs. Earnings reports have ramped up, with roughly one-third of all S&P 500 names set to report this week. Investors are currently receiving a hefty batch of reports this morning, though they will not see any mega-cap reports until tomorrow. Tomorrow also brings forth the October FOMC meeting, at which the market largely expects a 25-basis-point rate cut, which has served as an additional tailwind. Until then, investors had a wide swath of earnings to peruse, as well as the 10:00 ET release of the October Consumer Confidence Report (Briefing.com consensus: 94.2). On the trade front, President Trump has reiterated his belief that his Thursday meeting with Chinese President Xi will go well. (Michael Gibbs, Managing Director, Lead Portfolio Manager ) Markets: The S&P 500 surged to another new all-time high, closing at 6,875.16, and now sits entirely above the upper Bollinger Band—an indication that the index is overextended in the short term. This positioning makes it difficult to attract additional buyers today. Up volume accounted for only 65% of total volume, suggesting… Read More
Headline News: Equity futures point to a higher open this morning after Friday’s action pushed the major averages to fresh record highs. The market carries its momentum into a much-anticipated week of potential catalysts. The FOMC is widely expected to provide another 25-basis-point rate cut on Wednesday, with Friday’s softer-than-expected September Consumer Price Index (0.3%; Briefing.com consensus: 0.4%) helping cement market expectations for cuts at the October and December meetings. On the trade front, the U.S. and China have reached a framework for a trade deal that will avoid additional 100% tariffs, with President Trump and Chinese President Xi expected to finalize the deal during their meeting this Thursday. (Michael Gibbs, Managing Director, Lead Portfolio Manager ) Markets: The S&P 500 gapped higher at the open and closed at a new all-time high of 6,791.60. However, the RSI index failed to confirm the move with a new high, and up volume accounted for only 66% of total volume. This suggests the breakout may lack broad participation, and the new high remains suspect until an 80% up-volume day confirms stronger buying pressure. So far this morning, S&P 500 futures are up 0.81%, pointing to a strong start to the session and the… Read More
Headline News: The stock market is on track for a modestly lower opening amid another earnings-heavy day with some notable geopolitical headlines. A mega-cap consumer discretionary company posted earnings yesterday evening, missing EPS estimates as margins were lower due to tariff and supply chain pressures. On the trade front, the Trump administration sanctioned several of Russia’s largest oil companies, sending crude oil prices sharply higher. President Trump will no longer meet with Russian President Putin in Hungary. U.S. officials are still set to meet with China’s Vice Premier He Lifeng over the weekend to discuss trade. The market hit a pocket of volatility yesterday after Reuters reported that the Trump administration is weighing sweeping software export curbs on China in retaliation for rare earth restrictions. President Trump is set to make an announcement at 3:00 ET, though the topic of which has not yet been disclosed. (Michael Gibbs, Managing Director, Lead Portfolio Manager ) Markets: The S&P 500 tested both the top of its trading range and the 20-day moving average before closing lower at 6,699.40. It appears that investors are waiting on the sidelines ahead of Friday’s CPI report. We believe the index could continue to trade within the range… Read More
Headline News: Equity futures point to a flat opening after yesterday’s action, in which the major averages captured gains of 1.0% or wider across the board. While the information technology sector paced the early advance, all nine S&P 500 sectors that closed in positive territory also finished at least 1.0% higher. The market receives a sizable batch of earnings reports, including some notable blue-chip names. So far, this morning’s reports have come mainly in better than expected, helping drive futures off their early morning session lows. Macro developments are quiet this morning. President Trump’s more amicable commentary toward China added to yesterday’s positive sentiment. There are no consequential economic data releases slated for today. (Michael Gibbs, Managing Director, Lead Portfolio Manager ) Markets: The S&P 500 rallied past the top of its recent trading range and closed higher at 6,735.13. The RSI index also moved out of its previous range in confirmation of the rally. Notably, the up volume represented 81% of the total trading volume, indicating strong and broad-based market participation. This performance suggests the potential beginning of a new uptrend, and the index could test its previous all-time high later this week. However, investors should remain cautious as any… Read More
Headline News: Equity futures point to a higher open this morning after Friday’s action saw the major averages end the week on a winning note, finishing with gains of 1.5% or wider for the week. Trade negotiations with China continue to unfold ahead of the November 10 trade truce expiration. Bloomberg reports that President Trump stated soybeans, rare earth materials, and fentanyl are his main concerns with China that will be addressed in talks set to take place in Malaysia this week. The market will receive a hefty batch of earnings reports this week that will include nearly one-fifth of the S&P 500. While there are no consequential economic data releases today, Friday will see the delayed release of the September Consumer Price Index. (Michael Gibbs, Managing Director, Lead Portfolio Manager ) Markets: The S&P 500 closed higher at 6,664.01 and has now formed a five-day base. The index appears to be trading in a new range between 6,724.12 and 6,550.78, while the RSI index is also consolidating within a clear band. A breakout above 6,724.12 could trigger renewed buying interest and potentially lead to a retest of recent highs. Conversely, a move below 6,550.78 could invite additional selling pressure and… Read More
Headline News: The stock market is on track for another higher opening after the S&P 500 and Nasdaq Composite finished higher yesterday with strong performances in the tech space, while pockets of weakness in the broader market saw the DJIA retreat to its flatline. Semiconductor names are poised for another strong session after a company reported strong bookings in its Q3 earnings report, offering an encouraging read-through for chipmaking trends. In macro developments, USA Today reports that when President Trump was asked if the recent situation with China could pull the U.S. into a sustained trade war, he replied, “We’re in one now.” The president also lauded tariffs as a way to combat threats from China, stating that the U.S. would be exposed without them. The ongoing government shutdown continues to delay key data releases, though the market’s expectations for further easing from the Fed remain steady. (Michael Gibbs, Managing Director, Lead Portfolio Manager ) Markets: The S&P 500 experienced a sell-off early in the session, followed by a late rally, but ultimately closed little changed at 6,671.06. The index briefly traded above the 20-day moving average but was unable to hold that level, establishing near-term resistance at 6,674.58. The RSI… Read More
Headline News: Equity futures point to a higher open this morning after yesterday’s action saw the major averages shed the bulk of their hefty early losses, ultimately finishing mixed. The turnaround was broad-based, though tech and certain mega-cap stocks still lagged and limited growth at the index level. The financials sector was a standout yesterday as a slate of major banking names beat earnings expectations. The market is currently receiving another sizable batch of earnings reports. Trade concerns with China still linger after President Trump threatened retaliation for China’s soybean boycott yesterday afternoon. In Washington, Politico reports that Senate Republicans will hold votes on three bills that fund various government agencies as the shutdown persists. The market heard from several FOMC officials yesterday, which kept rate cut expectations elevated for both the October and December FOMC meetings. The Fed’s Beige Book is set for release at 2:00 p.m. ET. The MBA Mortgage Applications Index for the week ended October 11 decreased 1.8% from a prior decrease of 4.7%. (Michael Gibbs, Managing Director, Lead Portfolio Manager ) Markets: The S&P 500 traded down to and held support at 6,550.78. Buyers stepped in at that level, lifting the index to a higher close… Read More
