August 1, 2022

Markets:

Stock futures fell Monday following the market’s best month since 2020 as investors look ahead to another week of key earnings reports and economic data.

On Friday, all major indexes gained, posting winning weeks and capping off the best month of the year so far and then some. The Dow gained 6.7% in July, while the S&P 500 added 9.1%. The Nasdaq Composite rose 12.4% as investors rushed into the tech stocks beaten up the most during this bear market. For each index, July’s performances were the best since 2020.

This week, investors have more economic data and company earnings to digest. On Monday, companies such as Activision Blizzard, Devon Energy, Loews and more report earnings. Later in the week Uber, Caterpillar, Starbucks, Eli Lilly, Amgen and others also have scheduled reports.

In addition, the Friday nonfarm payrolls report from the Bureau of Labor Statistics will give more insight into the strong labor market. So far this year, the solid growth of jobs has prompted economists to say the U.S. is currently not in a recession, even with two consecutive quarters of negative GDP.

Oil prices declined during Monday morning trading on Wall Street after soft manufacturing data out of China prompted demand slowdown concerns.

West Texas Intermediate crude, the U.S. oil benchmark, shed 2.3%, or $2.31, to trade at $96.31 per barrel. International benchmark Brent crude dipped 1.8% to $102.07 per barrel.

Portfolio:

We enter the new trading week holding positions in CVE, MRO, SNAP, and holding itrm.  Very nice week for us to close a very nice month of July.  Now we enter a beautiful period to close out summer and bring in the Fall months as we head into mid-term elections.  This week we will continue to receive earning reports to drive specific sectors.  Love the price activity we are seeing and want to exploit every opportunity we can pinpoint.  We expect a week with a bit of whip saw action as traders position themselves.  Be patient early on this week.  Let's have a great session.