- Morning Briefing w/ KevinD
- Posts
- Tuesday June 4 @ 9:00am
Tuesday June 4 @ 9:00am
Stocks lower ahead of important jobs data after the open
"Software is eating the world, but AI is going to eat software."
๐ The Markets Overnight
๐ Asia: Mixed
๐ Europe: Down
๐ US Index Futures: Down
๐ข Crude Oil: Down
๐ช Gold: Down
๐ง Yields: Down
๐ต Dollar: Up slightly
๐ฎ Crypto: Up slightly
๐ Major Global Catalysts
Indian stocks plunge as the ruling party led by Narendra Modi appears likely to lose itโs majority as the vote count continues in the worldโs largest democracy. (link)
๐ต Economic Reports and Events Today
Consensus forecasts shown
๐ฐ Selected Earnings Releases
Consensus Estimates shown
After Hours Today:
Pre-Market Tomorrow:
๐ฎ Selected Analyst Ratings Changes
HEI Heico Morgan Stanley Upgrades to Equal-Weight Raises Target to $225.00
SUN Sunoco Mizuho Upgrades to Buy Lowers Target to $59.00
UPST Upstart Hldgs Redburn Atlantic Upgrades to Neutral Raises Target to $25.50
๐ Stocks In Play
GTLB Gitlab: Down 2% after reporting a revenue beat and raised outlook but a slightly higher quarterly loss. (link)
HUBS Hubspot: Up 3% on rumors the company has hired advisors in anticipation of a takeover deal. (link)
INTC Intel: Up 1% after revealing AI data center chips. (link)
GME GameStop: Down 6% after yesterday's 21% gain continues to unwind. (link)
INDA iShares India ETF: Down 7% on early Indian election results. (link)
BBWI Bath & Body Works: Down 6% as profit beat expectations but sales slipped. (link)
Other Notable Earnings Movers: BARK -14%, DBI -14%
๐ฌ Commentary
Stocks opened strongly yesterday, led by IWM small caps, but sellers quickly took control and sold aggressively through the lunch hour following the Manufacturing PMI report, which indicated a slowing economy. The swing in IWM was especially dramatic, losing 2.5% from the pre-market high to the intraday low. Much like Friday, the turnaround off the low was sudden and followed through into the close. SPY and QQQ retraced most of the pullback, finishing green but still closed below the open however, small caps lagged and closed 0.5% lower. Most sectors were down with energy very weak, down 2.6%. Healthcare, communications, and technology were the only sectors showing gains on the day.
Stocks are expected to open lower this morning with small caps lagging ahead of the 10:00 AM Jolts Job Openings data. A higher-than-expected number should improve optimism around a September rate cut but will also stoke fears highlighted yesterday that the economy may be slowing too much. We should expect another volatile day and week as traders digest these important job reports.
โต When youโre readyโฆ
Some tools/resources that I personally find valuable.
A powerful yet simple fundamental analysis tool: Stock Unlock
AI-powered stock research tools used by institutional investors: Finchat
The trading journal to help improve your trading performance: Tradervue
Analyze trade ideas with me, KevinD, in live calls: My trading group
#1 charting software for serious traders: TradingView
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Disclaimer: Everything expressed in this newsletter is a personal opinion provided for educational value only. This is not financial advice. These are not instructions, suggestions, or directions as to how to handle your money. Please, always do your own due diligence.
Tue