July 26, 2022

Market:

U.S. stock futures fell on Tuesday morning after Walmart cut its profit forecast, sending retail stocks tumbling in the premarket.

A late Monday announcement from Walmart, which cut its quarterly and full-year profit estimates because of rising food inflation, alarmed investors who deliberated the implications for other retail stocks. The big-box retailer said higher prices are spurring consumers to pull back on general merchandise spending, particularly in apparel.

Elsewhere, General Motors fell 3.6% in premarket trading after the company missed earnings estimates, citing supply chain disruptions stemming from Russia’s war on Ukraine and global Covid lockdowns. UPS shares fell 1.8%, despite the company posting earnings and revenue beats for the second quarter, after the shipping giant reported declines in its international and supply chain businesses.

Traders are also bracing for an onslaught of mega-cap tech earnings and economic data this week, as well as the outcome of the Federal Reserve meeting, that will help Wall Street direct its expectations for the rest of the year.

On Tuesday, the Federal Reserve will commence its two-day policy meeting. Traders are widely expecting a three-quarter percentage point hike.

On the economic front, investors are expecting the latest reading of the Case-Shiller Home Price Index at 9 a.m. ET. The consumer confidence report and new home sales data are due out at 10 a.m. ET.

Portfolio:

We enter the new trading session holding positions in SNAP, S, and holding ITRM. Such an important week with Fed and Big Tech earnings on tap. Absolutely love the potential here for the markets. Not much else to say or watch for, just need to remain patient and allow the Fed minutes to be released tomorrow and continue to evaluate earnings and patiently wait for Big Tech to release. Tonight, we receive MSFT, GOOGL, and even Texas instruments and ENPH for the semi's. Be on alert and let's have a great session.