Morning Reads

Morning Reads

Open Interest



This Morning

S&P 500 futures are down 11 points and are trading 0.3% below fair value. The Nasdaq 100 futures are down 50 points and are trading 0.5% below fair value. The Dow Jones Industrial Average futures are down 55 points and are trading 0.1% below fair value.

Futures are weaker amid nervousness that the moment participants have been waiting for all week is at hand. The July PCE Price Index is out at 8:30 a.m. ET followed by Fed Chair Powell's Jackson Hole symposium speech at 10:00 a.m. ET.  

Commodity prices are on the rise. WTI crude oil futures are up 1.2% to $93.66/bbl. Natural gas futures are up 1.7% to $9.51/mmbtu. Copper futures are up 1.8% to $3.76/lb.

The Treasury market is mixed this morning. The 2-yr note yield is down one basis point to 3.38% while the 10-yr note yield is up four basis points to 3.07%. 

At 8:30 a.m. ET market participants will receive the July PCE Price Index ( consensus 0.1%; prior 1.0%) and core PCE Price Index ( consensus 0.3%; prior 0.6%) included in the Personal Income ( consensus 0.6%; prior 0.6%) and Spending Report ( consensus 0.4%; prior 1.1%). July Advanced Intl. Trade in Goods (prior -$98.2B), Advanced Retail Inventories (prior 2.0%), and Advanced Wholesale Inventories (prior 1.9%) are out at the same time. The August University of Michigan Consumer Sentiment final reading ( consensus 55.1; prior 55.1) is out at 10:00 a.m. ET.

In news:

  • Affirm (AFRM 27.07, -4.16, -13.32%): reports Q4 (Jun) results, beats on revs, GMV increased 77% yr/yr; guides Q1 revs below consensus; guides FY23 revs below consensus
  • Gap (GPS 10.66, +0.65, +6.49%): beats by $0.10, reports revs in-line, comps of -10%; withdraws prior FY23 guidance
  • Dell (DELL 45.26, -2.64, -5.51%): beats by $0.04, reports revs in-line; notes demand environment has slowed as macro dynamics have become more challenging
  • Ulta Beauty (ULTA 434.35, +15.10, +3.60%): beats by $0.71, beats on revs, comps of +14.4%; guides FY23 EPS above consensus, revs above consensus, raises FY23 comp guidance
  • Workday (WDAY 181.00, +18.64, +11.48%): beats by $0.03, beats on revs; reaffirms FY23 subscription revs; reaffirms FY23 revenue guidance
  • Domo (DOMO 24.06, -4.61, -16.08%): beats by $0.07, misses on revs; guides Q3 EPS above consensus, revs below consensus; guides FY23 EPS above consensus, revs below consensus
  • Seagen (SGEN 147.53, -16.84, -10.25%): Merck (MRK) discussions to acquire Seagen (SGEN) hit a roadblock over price, according to Bloomberg.
  • Elastic (ESTC 81.00, -3.98, -4.68%):  beats by $0.02, beats on revs; guides OctQ EPS in-line, revs in-line; guides FY23 EPS in-line, reaffirms FY23 revs guidance; also names AWS exec as chief product officer
  • Marvell (MRVL 53.35, -1.74, -3.16%): beats by $0.01, reports revs in-line; guides OctQ EPS in-line, revs in-line
  • Electronic Arts (EA 145.50, +17.89, +14.02%): moving on For The Win USA Today report that Amazon (AMZN) is interested in acquiring the company

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended the week on a mostly higher note. Japan's Nikkei: +0.6% (-1.0% for the week), Hong Kong's Hang Seng: +1.0% (+2.0% for the week), China's Shanghai Composite: -0.3% (-0.7% for the week), India's Sensex: +0.1% (-1.4% for the week), South Korea's Kospi: +0.2% (-0.5% for the week), Australia's ASX All Ordinaries: +0.7% (-0.2% for the week).
    • In economic data:
      • Japan's August Tokyo CPI 2.9% yr/yr (last 2.5%) and Tokyo Core CPI 2.6% yr/yr (expected 2.5%; last 2.3%)
      • Singapore's July Industrial Production -2.3% m/m (expected 0.9%; last -8.0%); 0.6% yr/yr (expected 5.3%; last 2.6%)
    • In news:
      • Japan's Core CPI increased at its fastest pace since late 2014 in the August reading.
      • South Korea's vice finance minister said that risks stemming from higher rates will be reviewed.
      • Wealth management firms in China were ordered to strengthen internal controls.
      • Reserve Bank of New Zealand Governor Orr said that at least a couple more rate hikes will be made and that the central bank is not projecting a technical recession at this time.
  • Major European indices trade on a mostly lower note while the U.K.'s FTSE (unch) outperforms, hovering just above its flat line. STOXX Europe 600: -0.4% (-1.4% week-to-date), Germany's DAX: -0.4% (-2.4% week-to-date), U.K.'s FTSE 100: UNCH (-0.9% week-to-date), France's CAC 40: -0.4% (-2.1% week-to-date), Italy's FTSE MIB: -0.9% (-1.2% week-to-date), Spain's IBEX 35: -0.2% (-2.1% week-to-date).
    • In economic data:
      • Eurozone's July Private Sector Loans 4.5% yr/yr (expected 4.6%; last 4.6%)
      • Germany's September GfK Consumer Climate -36.5 (expected -31.8; last -30.9)
      • France's August Consumer Confidence 82 (expected 79; last 80)
      • Italy's August Business Confidence 104.3 (expected 104.4; last 106.4) and Consumer Confidence 98.3 (expected 92.5; last 94.8)
    • In news:
      • British energy regulator announced that the energy price cap will be nearly doubled from October 1 for the next three months. The cap is expected to be increased again in early 2023.
      • Germany's economy minister echoed the sentiment, saying that energy prices are expected to increase sharply in the winter.
      • Germany's GfK Consumer Climate fell to a record low in the September reading.

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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