December 6, 2022

Markets:

Stock futures were little changed Tuesday, as traders took a breather after fears of even higher rates sparked a sell-off during the previous session.

The Nasdaq Composite led Monday’s downward charge, dropping 1.93% for its biggest one-day drop since Nov. 9. The S&P 500 shed 1.79%, also notching its worst day in nearly a month. The Dow, meanwhile, lost 482 points, or 1.4%.

Better-than-expected November ISM Services data, which looks at the purchasing level of manufacturers as a gauge the health of the broader economy, pressured equities Monday. The report stoked fears that the Federal Reserve will need to hike rates for longer than anticipated to bring down inflation. The release aligns with the payrolls report late last week in pointing to resilience within some areas of the economy.

Wall Street was struggling to rebound from a poor start to the week, after stronger-than-expected U.S. economic data in recent days raised fears about further interest rate rises by the Federal Reserve.

S&P 500 index futures were barely changed on Tuesday, having suffered their worst session in a month on Monday following a robust survey of business condition in the U.S. service sector.

This followed Friday’s news that the jobs market was showing few signs that the Fed’s attempts to cool the economy by sharply raising borrowing costs were yet to have a dramatic impact.

Portfolio:

We enter the new trading session holding positions in AEHR, CWH, and M. Some interesting price action taking place in pre-market across a few sectors we love to monitor. We could see some early session triggers today, so please be ready. We also begin to enter a technical period that has historically begun end of year trades. Watching this closely to see if the trend continues and provides us new opportunities for the short term. Be ready today, especially early on. Let's have a great session.