March 7, 2023

Markets:

U.S. stock futures traded marginally higher on Tuesday as traders await Federal Reserve Chair Jerome Powell’s latest comments on the state of the economy.

The major averages are coming off a session that featured mild gains. The Dow on Monday advanced 0.1%, along with the S&P 500 and Nasdaq Composite.

Stocks were higher to start the day after Goldman Sachs initiated coverage of Apple with a buy rating, lifting both the iPhone maker and the broader market. Apple makes up about 7% of the S&P 500. Other mega-cap tech stocks such as Alphabet and Microsoft also advanced.

However, the major averages gave up most of those gains following a slight rise in bond yields. Investors have been troubled by moves in the bond market after the 10-year Treasury yield.

On deck Tuesday and Wednesday is congressional testimony from Fed Chair Powell, who will give remarks on where he sees the U.S. economy — and what he expects for interest rates to go from here.

January wholesale inventories data is set to release Tuesday after the opening bell, giving investors insight into the consumer economy. Economists polled by Dow Jones expect a decline of 0.4%, compared to a rise of 0.1% in the prior reading.

Consumer credit data expected Tuesday afternoon is forecasted to show a rise of $22 billion in January, according to consensus estimates from Dow Jones. That would follow a $11.6 billion increase the prior month.

Portfolio:

We enter today's session holding positions in YEXT, S, and CENX. Today it's all about Powell and his testimony and how the markets receive it short term. Really don't understand this narrative, do not see him saying anything that would affect the markets current move. But, it's the news / narrative they wish to push. Technically, market still remains in such a strong trend / line. This is al that matters to us. But, watching days like yesterday start strong and fade is never exciting. We just need to remain patient and allow positions to materialize. Patience needed until after Powell's testimony. Be on alert and ready today for further updates and a potential new trade set-up.