- Morning Briefing w/ KevinD
- Posts
- Friday May 19 @ 9:00am
"When you get a range expansion, the market is sending you a very loud, clear signal that the market is getting ready to move in the direction of that expansion.”
📈 The Markets Overnight
🌏 Asia: Up but China down
🌍 Europe: Up
🌎 US Index Futures: Up
🛢 Crude Oil: Up strongly
💵 Dollar: Down
🧐 Yields: Up
🔮 Crypto: Up a bit
🌏 Major Global Catalysts
Positive debt ceiling sentiment.
💵 Economic Reports and Events Today
Consensus forecasts shown
All Day G7 Meetings Begin G7 meetings are attended by finance ministers and central bankers from 7 industrialized nations - Canada, Italy, France, Germany, Japan, the UK, and the US.
8:45am FOMC Member Williams Speaks at the Thomas Laubach Research Conference, in Washington DC.
9:00am FOMC Member Bowman Speaks at the Texas Bankers Association Annual Convention, in San Antonio.
11:00am Fed Chair Powell participates in a panel discussion titled "Perspectives on Monetary Policy" at the Thomas Laubach Research Conference, in Washington DC.
4:00pm Monthly Options Expiration
Monday Canadian equity markets closed for the Victoria Day holiday.
📰 Selected Earnings Releases
Consensus Estimates shown
After Hours Today:
None
Pre-Market Tomorrow:
NNOX Nano X Imaging EPS -0.340 Rev 2.89M
NAT Nordic American Tankers EPS 0.200 EPS 80.03M
ZIM ZIM Integrated Shipping EPS -0.180 EPS 1.57B
🔮 Selected Analyst Ratings Changes
CVX Chevron Mizuho Maintains Neutral Lowers to 196.00
XOM Exxon Mobil Mizuho Maintains Neutral Lowers to 130.00
HD Home Depot Oppenheimer Maintains Outperform Lowers to 360.00
BE Bloom Energy JP Morgan Upgrades to Overweight Lowers to 20.00
DIS Walt Disney Macquarie Downgrades to Neutral Lowers to 103.00
GPS Gap Citigroup Upgrades to Neutral Lowers to 8.0000
SHAK Shake Shack Morgan Stanley Upgrades to Equal-Weight Raises to 63.00
📉 Stocks In Play
FL Foot Locker Down 25% on a big miss and lowered guidance.
BE Bloom Energy Up 5% on and upgrade from JP Morgan.
OXY Occidental Petroleum up 1.5% as Warren Buffett increase stake to 24.4%.
LSDI Lucy Scientific Discovery Low float microcap up 17% on 10X RVOL after announcing a partnership with Therapsil to fast-track psilocybin access and product launch.
💬 Commentary
Markets rallied strongly shortly after the opening yesterday but took a midday break with a sharp pullback as Fed speak increased the odds of another 25bps rate hike at the June FOMC meeting. The probability of a hike has risen from 10% last week to 36% today. However, markets quickly shook off that negative sentiment with a strong afternoon rally led by the tech and communications sectors, resulting in the indices closing at the day's highs.
In the pre-market this morning, markets are higher, shrugging off terrible earnings from Foot Locker and weakness in the technology sector. Energy is leading the way, with the industrial sector following closely behind, lifted by strong earnings from Deere. Expect some volatility today surrounding Jay Powell's appearance at a conference on monetary policy, as markets will be looking for hints on the rate policy at the June meeting and seeking clarity on potential cuts later this year. Additionally, the increasingly positive sentiment around the debt ceiling talks is another catalyst we need to keep a close eye on as a deal may come this weekend.
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