Headline News: Equity futures point to a mostly lower opening this morning as semiconductor stocks face an extension of yesterday’s pressure. The semiconductor group lagged yesterday, though broad strength and solid gains across other meg-cap tech names helped the major averages finish higher. This morning’s pressure follows an 11% drop in Korean-listed shares of memory powerhouse SK Hynix, with the stock’s ADR debut on the Nasdaq last Friday contributing to recent choppiness across the group. Elsewhere, oil prices are little changed this morning, though Bloomberg reports the U.S. hit a sanctioned Iranian oil tanker as traffic in the Strait of Hormuz dwindles. Investors have a decent batch of earnings reports to assess this morning as Q2 earnings season begins to broaden beyond the financials sector. Additionally, today’s economic data slate is also relatively full and features the June Retail Sales report (Briefing.com consensus 0.3%) at 8:30 a.m. ET. (Michael Gibbs, Managing Director, Lead Portfolio Manager) Markets: The S&P 500 closed little changed at 7,572.40, finishing just below the current potential resistance level of 7,579.97. During the session, the index tested the 10-day moving average, where buyers once again stepped in to support the uptrend. The RSI index and the… Read More
Headline News: Wholesale prices unexpectedly fell in June as sliding energy prices helped brighten the inflation picture, the Bureau of Labor Statistics reported Wednesday. The producer price index posted a seasonally adjusted 0.3% decline for the month, compared to the Dow Jones consensus estimate for the final-demand cost measure to be unchanged. On an annual basis, the index indicated a 5.5% inflation rate. Excluding food and energy, core PPI rose 0.2%, against the outlook for a 0.3% increase. As with consumer prices, the index benefited from easing energy costs, particularly as oil fell due to receding tensions between the U.S. and Iran. (Jeff Cox, CNBC) Markets: The S&P 500 traded in another tight range, closing at 7,543.59 while holding above its 10-day moving average. Technically, the index appears poised for a potential breakout above the key resistance level at 7,557.92. If that level is surpassed, the all-time high at 7,620.90 could be tested later this week. Inflation data continued to support the bullish case for equities, as the June Producer Price Index (PPI) came in better than expected, reinforcing yesterday’s softer Consumer Price Index (CPI) report. Those reports suggest inflationary pressures may continue to ease, which is favorable… Read More
Headline News: Equity futures point to a lower open this morning as semiconductor stocks face pressure in the premarket while lingering hostilities between the U.S. and Iran send oil prices higher. Both semiconductors and oil contributed to considerable choppiness last week, with the S&P 500 and NASDAQ Composite notching solid weekly gains, while the DJIA faced a modest loss. Crude oil is currently up $2.43 (+3.4%) to $73.84 per barrel after the U.S. and Iran traded strikes over the weekend. Iran maintains that the Strait of Hormuz is closed (and attacked a commercial ship traveling the waterway), though Bloomberg reports that a southern route remains open. Meanwhile, semiconductor stocks are under pressure after shares of a large semiconductor moved sharply lower following a successful ADS debut on the NASDAQ on Friday. There are no earnings on the calendar today, but tomorrow will effectively kick off the Q2 earnings season with a slate of major banking names. Similarly, there are no economic data releases of note today, though tomorrow will feature the June CPI (Briefing.com consensus -0.1%). (Michael Gibbs, Managing Director, Lead Portfolio Manager) Markets: The S&P 500 rallied for a second consecutive session, closing at 7,575.39, just below the… Read More
Headline News: Equity futures point to a mixed opening this morning, with the stock market poised to continue yesterday’s trends. While oil prices are only modestly higher after yesterday’s spike, the U.S. and Iran continue to exchange fire, with Bloomberg reporting that traffic in the Strait of Hormuz remains at a near-standstill. The re-escalation in tensions put broad pressure on the market yesterday and sent many oil- and rate-sensitive stocks sharply lower. The S&P 500 and DJIA retreated, though the Nasdaq Composite logged a modestly higher finish due to a solid rotation back into semiconductor stocks. So far, chipmakers are seeing continued momentum, with Nasdaq futures firmly higher as a result. On the data front, the market is set to receive weekly initial jobless claims data at 8:30 a.m. ET (Briefing.com consensus 220,000) followed by June existing home sales (Briefing.com consensus 4.20 million) at 10:00 a.m. ET. (Michael Gibbs, Managing Director, Lead Portfolio Manager) Markets: The S&P 500 sold off during yesterday’s session, testing the 50-day moving average at 7,417.71 before buyers stepped in and sparked a late-day rally, helping the index close at 7,482.71. The successful test of the 50-day moving average is a positive technical development and suggests buyers… Read More
Headline News: Equity futures point to a sharply lower opening this morning as an escalation in hostilities between the U.S. and Iran sends oil prices surging and puts broad pressure on stocks. Oil-driven volatility played a role in yesterday’s lower finish for the major averages, with President Trump revoking the waiver that allowed Iran to sell oil after Iran struck several commercial ships in the Strait of Hormuz. Tensions escalated further overnight, with President Trump declaring the ceasefire over and Axios reporting that fresh U.S. strikes on Iran were four or five times bigger in scope than previous strikes. WTI crude oil is currently up $3.60 (+5.1%) to $74.04 per barrel. Elsewhere, semiconductor stocks are on track for another lower opening, with concentrated pressure across the group weighing on the major averages yesterday. Memory names are among the worst performers in the premarket. Today will be lighter on the data side, though the market will receive the minutes for the June FOMC meeting at 2:00 p.m. ET, the first with new Fed Chair Kevin Warsh at the helm. (Michael Gibbs, Managing Director, Lead Portfolio Manager) Markets: The S&P 500 traded sideways in a tight range, closing slightly lower at… Read More
Headline News: Equity futures point to a mostly lower open this morning as chipmaker stocks are on pace to give back much of yesterday’s gains. Strength across the group and support from other mega-cap tech names helped the major averages finish higher yesterday after semiconductor stocks retreated in the prior two sessions. The early weakness across semiconductor stocks is being somewhat attributed to an underwhelming reaction to Samsung Electronics’ earnings report overnight, which weighed heavily on South Korea’s Kospi. Futures tied to the tech-heavy Nasdaq Composite are under particular pressure this morning, though the DJIA is still on track for a higher opening, suggesting some rotational action could be in play. Headlines are relatively quiet elsewhere, with corporate news flow on the lighter side as the market drifts towards the next earnings season, while not much has changed surrounding the U.S.-Iran conflict. Investors will receive the May Trade Balance at 8:30 a.m. ET (Briefing.com consensus -$78.8 billion), the only economic data release of note. (Michael Gibbs, Managing Director, Lead Portfolio Manager) Markets: The S&P 500 closed higher at 7,537.43, breaking above the downtrend line. However, the buying demand was only modest, with up volume accounting for just 55% of… Read More
Headline News: Equity futures point to a higher opening to the holiday-abbreviated week as tech stocks advance in the premarket after a volatile previous week. The S&P 500 lost 2% last week as many of the market’s largest components struggled against a backdrop of heightened semiconductor weakness, though the S&P 500 Equal Weighted Index advanced 1.6% as investors rotated into other pockets of the market. On the geopolitical front, the U.S. and Iran exchanged strikes over the weekend but have agreed to refrain from more strikes ahead of a fresh round of talks set to take place on Tuesday. This week will be particularly light on the earnings front, though there are a handful of S&P 500 names set to report, including a beleaguered athletic apparel giant scheduled to report tomorrow. There will be a few economic data releases of note throughout the week, though today’s calendar is empty. (Michael Gibbs, Managing Director, Lead Portfolio Manager) Markets: The S&P 500 spent most of the trading session under pressure before a late-day rally lifted the index to a close of 7,354.02, just below the 50-day moving average at 7,363.43. The RSI remained below the key 50 level, reflecting weak momentum,… Read More
Headline News: Equity futures point to a lower opening as semiconductor stocks move sharply lower in the premarket. The group faced choppy action yesterday following a blowout earnings release from a large company, but ended the session with solid gains. That strength was not evident at the index level, as heightened demand for memory caused several “magnificent seven” companies to raise prices, setting up another day of weakness across mega-cap tech. This morning, chipmakers are giving back their gains after reports that OpenAI may delay its IPO to 2027 due to recent volatility across other AI-related names. Additionally, Axios reports that the Trump administration has asked OpenAI to delay the release of its latest model due to security concerns. Outside of the tech space, oil prices continue to retreat, and futures linked to the DJIA hold the narrowest losses, suggesting another day of rotation into the broader market could be in store. (Michael Gibbs, Managing Director, Lead Portfolio Manager) Markets: The S&P 500 closed lower at 7,357.49, finishing just above its 50-day moving average at 7,356.18. The RSI remained below the key 50 level, ending the session at 45.30, reflecting continued weak momentum. However, the Advance/Decline line turned higher,… Read More
Headline News: Equity futures point to a flattish opening this morning as investors monitor mostly optimistic updates on negotiations between the U.S. and Iran coming off the long holiday weekend. The two sides signed a 60-day memorandum of understanding last week, pushing oil prices sharply lower and helping the major averages recover from a post-FOMC meeting sell-off to finish higher for the week. The FOMC kept rates unchanged but struck a hawkish tone, which bumped up market expectations and the timeline for a rate hike. Inflation readings will come fully into focus later in the week with Thursday’s release of the May Personal Income and Spending Report, which includes the PCE Price Index (Briefing.com consensus 0.4%), the Fed’s preferred inflation gauge. Meanwhile, economic data is on the lighter side today. Earnings will also be lighter throughout the week, with just a handful of S&P 500 names set to report. (Michael Gibbs, Managing Director, Lead Portfolio Manager) Markets: The S&P 500 traded in a relatively tight range on Monday, closing modestly higher at 7,500.58. More importantly, the index managed to finish back above its 20-day moving average at 7,485.26, recovering from the heavy selling pressure seen in the prior session.… Read More
Headline News: Equity futures point to a higher opening this morning as the market looks to rebound from yesterday’s selloff that followed the June FOMC meeting. The FOMC left rates unchanged, but analysts are referring to the decision as a “hawkish pause” as the dot plot showed nearly half of participants expecting a rate hike by year’s end, while inflation estimates increased. Stocks are supported by retreating oil prices this morning after President Trump officially signed the 60-day memorandum of understanding with Iran, which was touted as immediately reopening the Strait of Hormuz while lifting Iran’s naval blockade. Elsewhere, chipmaker stocks (which were largely resilient to yesterday’s selloff) are posting solid gains in the premarket. The market has several economic data releases on the calendar this morning, including the weekly initial jobless claims report (Briefing.com consensus 226,000). As a reminder, this will be the stock market’s last session of the week, as the market will be closed for the Juneteenth holiday tomorrow. (Michael Gibbs,_Managing Director, Lead Portfolio Manager) Markets: The S&P 500 sold off sharply following the Federal Reserve meeting, closing at 7,420.10. Selling pressure was broad-based, with down volume reaching 78% of total volume, a sign that institutional… Read More
