July 19, 2022

Markets:

Stock futures rose Tuesday as traders pored through more corporate earnings reports a day after the market failed to sustain a sharp rally.

Netflix is set to report after the close Tuesday. Later in the week, Tesla, United Airlines, American Airlines, Snap, Twitter and Verizon are among those scheduled to report.

IBM shares fell 5% in the premarket, after the tech company lowered its forecast for cash flow, even while reporting earnings that beat Wall Street’s earnings and revenue estimates.

On Monday, the Dow shed more than 200 points to end the day in the red, reversing a morning rally fueled by solid earnings reports from Goldman Sachs and Bank of America. Oil broke above $100 a barrel, and bitcoin surged to the highest levels seen since mid-June.

Late in Monday’s session, stocks were dragged down on a Bloomberg report that Apple would slow hiring and spending on growth next year to prepare for a potential economic downturn. Shares of the iPhone maker ended the day about 2.1% lower.

The news came as traders weigh the potential for a U.S. recession, especially as inflation remains at multidecade highs and the Federal Reserve raises rates to curb said inflationary pressures.

Portfolio:

We enter today's session holding positions in APP, ADTN, WEBR, LCID, and ITRM. Very nice session yesterday. The overall market did experience a wild swing yesterday and many traders chased the market into the close to get short on the reported AAPL news. We decided to sit on our hands and allow it to materialize rather than trying to chase a move. We will be watching the open closely. We are starting to see traders position themselves for moves into the Fall season. We love seeing the activity in the options market after a dull period the last two weeks. Be on alert today and let's have a great session.