- Morning Briefing w/ KevinD
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- Tuesday September 3 @ 9:00am
Tuesday September 3 @ 9:00am
Markets lower to start a busy holiday shortened week
KevinD
September 03, 2024
“Good investing requires a weird combination of patience and aggression. And not many people have it.”
📈 The Markets Overnight
🌏 Asia: Down a bit
🌍 Europe: Down
🌎 US Index Futures: Down
🛢 Crude Oil: Down a lot
🪙 Gold: Down slightly
🧐 Yields: Down
💵 Dollar: Up slightly
🔮 Crypto: Mixed
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🌏 Major Global Catalysts
Tom Lee, the media’s favorite perma-bull calls for a pullback after his failed call for a 40% August small cap rally. (ink)
💵 Economic Reports and Events Today
10:00am ISM Manufacturing PMI: 47.5 expected, 46.8 previous. Index reflecting manufacturing activity across the U.S. (link)
10:00am ISM Manufacturing Prices: 52.5 expected, 52.9 previous. Index showing changes in prices paid by manufacturers. (link)
10:00am Construction Spending m/m: 0.1% expected, -0.3% previous. Monthly change in the total value of construction work. (link)
📰 Selected Earnings Releases
Consensus Estimates shown
After Hours Today:
Pre-Market Tomorrow:
🔮 Selected Analyst Ratings Changes
AAOI Applied Optoelectronics: Raymond James Upgrades to Outperform, Targets $17.00
ADSK Autodesk: HSBC Upgrades to Buy, Raises Target to $299.00
BA Boeing: Wells Fargo Downgrades to Underweight, Lowers Target to $119.00
LUV Southwest Airlines: Evercore ISI Group Upgrades to Outperform, Raises Target to $35.00
NTAP NetApp: Loop Capital Upgrades to Buy, Raises Target to $150.00
RDFN Redfin: B. Riley Securities Upgrades to Buy, Raises Target to $13.00
U Unity Software: Morgan Stanley Upgrades to Overweight, Maintains Target at $22.00
📉 Stocks In Play
X United States Steel: Down 4% after Harris said she's opposed to the takeover by Japan's Nippon Steel. (link)
U Unity Software: Up 7% after Morgan Stanley upgraded the stock to overweight but maintains the target at $22. (link)
BA Boeing: Down 4% as concerns mount that the expiration of their contract with the International Association of Machinists will lead to a strike. (link)
MSOS AdvisorShares Trust AdvisorShares Pure US Cannabis ETF: Up 4% after a Trump post suggests support for a Florida amendment to legalize recreational marijuana. (link)
AUUD Auddia Inc: Up 59% after the low float micro-cap announced the launch of Apple CarPlay and Android Auto interfaces for its Faidr mobile application, enabling users to mirror smartphone entertainment on their vehicle's infotainment system. (link)
💬 Commentary
Last week, the market mostly moved sideways, digesting a slew of earnings reports and economic data, including Friday's favorable PCE report which paves the way for rate cuts later this month. SPY gained nearly 1%, closing just below a new all-time high. The Qs spent the last three days testing support at the 21-day moving average, culminating in a bullish hammer candle on Friday with a 1.2% gain. IWM was up 0.6%, also printing a hammer candle. It’s an interesting setup to start the seasonally weakest month of the year.
This week brings important economic data, beginning with today's manufacturing PMI, followed by the Bank of Canada's rate statement tomorrow, and several jobs reports throughout the week, culminating in Friday's Non-Farm Payrolls report. With the Fed's recent shift in focus from inflation to jobs, traders will be paying very close attention to all of this week's labor market data.
Although earnings season is winding down, some closely watched names are still reporting. Dick's Sporting Goods and Dollar Tree report before the open on Wednesday, with C3.ai reporting after the close. NIO, a retail favorite, reports before the open on Thursday, but the biggest release of the week is likely to be Broadcom after the close on Thursday.
Stocks pulled back early in pre-market trading this morning as investors remain cautious heading into what is typically a volatile month and a busy week on the economic calendar. The ISM PMI data, set to be released 30 minutes after the open, will likely set the tone for the rest of the day. Traders are also looking ahead to tomorrow’s JOLTS job report and the Bank of Canada’s rate announcement, both of which could significantly impact market sentiment.
⛵ When you’re ready…
Some tools/resources that I personally find valuable.
A powerful yet simple fundamental analysis tool: Stock Unlock
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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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