August 25, 2022

Markets:

U.S. stock index futures rose early Thursday amid thin summer trading as investors waited for an update on Federal Reserve thinking on Friday.

Stock index futures began to move higher after revised data showed German’s gross domestic product grew by 0.1% in the second quarter. Analysts had forecast no growth on fears that surging energy prices were curtailing activity. The German Ifo business climate index also didn’t fall as much as anticipated.

Also helping the mood was news that Beijing was deploying a further 1 trillion yuan ($146 billion) of measures to help revive an economy struggling with a severe property sector downturn, a drought-related manufacturing slowdown, and lingering COVID-19 shutdowns.

Activity also has been curtailed by a reluctance among some investors to make bold bets before Fed Chairman Jay Powell gives a speech on Friday at the Jackson Hole symposium.

Investors will dissect Powell’s comments for clues to the direction of Fed policy, an issue that has greatly determined market trajectory of late.

U.S. economic reports on the slate Thursday include the weekly initial jobless claims and the second reading of second quarter GDP data, both due at 8:30 am Eastern. The GDP data also will include the preliminary reading on corporate profits for the second quarter.

Oil futures were steady with U.S. crude CL.1, 0.21% up just 0.1% to $94.96 a barrel.

Bitcoin BTCUSD, -0.18% advanced 0.1% to $21721.

Portfolio:

We enter the new trading session holding positions in ET, TELL, and CNHI.  We might be looking to add a new opportunity as well as price activity continues to ignite.  Friendly reminder we are trying to remain cautious ahead of Jay Powell tomorrow speech from the Jackson Hole symposium.  Be on alert, let's continue to take advantage of opportunities, and let's have a great session.