September 12, 2022

Markets:

Stock futures rose Monday as Wall Street looks ahead to key inflation data to be released this week.

The moves came after a winning week for U.S. stocks, as all three major averages snapped a three-week losing streak. The Dow added 2.6% on the week, while the S&P 500 gained 3.7%. The Nasdaq Composite was 4.1% higher.

Wall Street investors had been looking for signs that the size of future rate hikes might be smaller as inflation cools off, Fed Chair Jerome Powell last week reiterated that he is “strongly committed” to bringing down inflation.

This week, investors are looking ahead to the August consumer price index report, scheduled to be released Tuesday. The report is one of the last pieces of data on inflation the Fed will see ahead of its September meeting. Retail sales and industrial production reports will be released Thursday.

The euro jumped to a three-week high against the U.S. dollar early on Monday after hawkish messaging from the European Central Bank on monetary policy tightening.

Oil prices were lower after energy markets whiplashed last week. Prices have been weighed down by rising interest rates and the potential curbed demand due to Covid lockdowns in China.

West Texas Intermediate fell 0.29% to $86.54 a barrel. Brent crude dipped 0.17% to $$92.68 a barrel.

Portfolio:

We enter the new trading week holding positions in AI, CSIQ, COMM, and CNHI.  All four positions are looking toopen higher. We will be looking to add new opportunities developing but want to be a bit cautious as we will be receiving the August consumer price index report tomorrow. The report is one of the last pieces of data on inflation the Fed will see ahead of its September meeting. Once we have this, our path and trend lines are set with expectations for the next meeting and a focus will now be shifted to mid-terms and year end price activity. Be ready today. But especially be ready this week. We do anticipate a monster week of opportunity. Let's have a great session.