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- Thursday March 23 @ 9:00am
Thursday March 23 @ 9:00am
Dead cat bounce after yesterday's plunge or will the rally resume?
Matthew
March 23, 2023
Thursday March 23 @ 9:00am
"One of the things you learn in this business is humility because you see your mistakes the next day."
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📈 The Markets Overnight
🌏 Asia: Up
🌍 Europe: Down
🌎 US Index Futures: Up, a little volatile
🛢 Crude Oil: Up
💵 Dollar: Up slightly
🧐 Yields: Up
🔮 Crypto: Up
🌏 Major Global Catalysts
Reaction to yesterdays FOMC rate announcement.
💵 Economic Reports and Events Today
Consensus forecasts shown
8:30am Unemployment Claims 198K, 191K reported. The number of individuals who filed for unemployment insurance for the first time during the past week.
8:30am Current Account -213B, -207B reported. Difference in value between imported and exported goods, services, income flows, and unilateral transfers during the previous quarter.
10:00am New Home Sales 650K Annualized number of new single-family homes that were sold during the previous month.
📰 Selected Earnings Releases
Consensus Estimates shown
After Hours Today:
PLNHF Planet 13 Hldgs EPS -0.020 Rev 24.50M
Pre-Market Tomorrow:
EXPR Express EPS -0.550 Rev 434.70M
🔮 Selected Analyst Ratings Changes
AMC AMC Enter Hldgs Citigroup Reinstates Sell Targets 1.60
COTY Coty Piper Sandler Maintains Overweight Raises to 15.00
FSLR First Solar Barclays Maintains Equal-Weight Raises to 230.00
IPAR Inter Parfums Piper Sandler Maintains Overweight Raises to 170.00
JPM JPMorgan Chase Oppenheimer Maintains Outperform Lowers to 157.00
MRO Marathon Oil Citigroup Upgrades to Buy Targets 27.00
NVDA NVIDIA Needham Maintains Buy Raises to 300.00
TTD Trade Desk Needham Reiterates Buy Maintains 68.00
📉 Stocks In Play
SQ Block Down 19% on a short reort from Hindenburg research.
COIN Coinbase Down 16% after the company received a Wells Notice from the SEC alleging violations of federal securities laws in regards to the company's spot market and staking service.
GBIO Generation Bio Up 15% on announcement of collab with Moderna MRNA.
💬 Commentary
Prior to the Federal Reserve's rate announcement yesterday, financial markets remained mostly stagnant although a little choppy. The announcement of a 25 basis point hike, as expected, with an additional 25 basis point hike projected for this year, and a corresponding 75 basis point cut for next year, led to a modest uptick and mild volatility as investors awaited the press conference by Federal Reserve Chairman Jay Powell. While markets initially responded favorably to Powell's prepared statement, heightened volatility ensued during the Q&A session as a more hawkish tone emerged. This resulted in a sharp pullback in stock prices, with selling accelerating after former Federal Reserve Chair Janet Yellen contradicted Powell's stance on the policy of insuring all bank deposits in her own press conference. Although this selling had the characteristics of capitulation, it resulted in very bearish reversal candles appearing on the charts of nearly every index, sector, and stock, signaling a high probability of a new downward trend. However...
As of this morning, markets have rebounded strongly, following an overnight surge. Large-cap stocks, particularly mega-cap tech, are showing notable strength, while small-cap stocks are lagging behind. Despite the violent shock to the system experienced yesterday afternoon, price movements suggest that investors have found value in the pullback. It remains to be seen whether this value will persist as prices continue to rise. While one may hope that yesterday afternoon's volatility was an anomaly, it is prudent to expect aftershocks today, with the potential for violent price swings, as the battle between bulls and bears continues to unfold.
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