August 26, 2022

Markets:

Stock futures dipped Friday as investors awaited Federal Reserve Chair Jerome Powell’s speech in Jackson Hole, Wyoming.

The moves followed an up day for the major averages in which the Dow jumped about 300 points, and the S&P 500 gained 1.4%. The Nasdaq Composite was the outperformer, advancing 1.7% as a pullback in yields helped tech shares.

Nevertheless, all the major averages are on pace for their second straight down week. The Dow is on track for a 1.2% decline. The S&P 500 and Nasdaq Composite are heading to slightly smaller declines of 0.7% and 0.5%, respectively.

All eyes are on Powell’s widely anticipated 10 a.m. ET speech at the central bank’s annual symposium in Wyoming.

Investors are hoping for new guidance about how the Fed will act this autumn, but expectations are lower, with many expecting Powell to reiterate the Fed’s promise to slow inflation by raising interest rates. Opinion’s divided on whether the Fed will bump rates by half a percentage point or three quarters of a point at its next policy meeting in September.

The pan-European Stoxx 600 was fractionally lower by mid-morning, having given back gains of 0.4% at the open. Basic resources gained 0.8% while media stocks fell 1.5%.

Portfolio:

We enter the last trading session of the week holding positions in CNHI, TELL, ET, and NKLA. Nice week for us and we look to continue to position ourselves for the weeks / months to come. Today, all about the speech at 10am. Expect swings, stay patient, and then allow price to materialize. It's really that simple for today. Powell’s widely anticipated 10 a.m. ET speech will be the main driver today and also set the stage for early next week. Be ready and let's have a great session.