July 14, 2023

Markets:

Futures tied to the Dow Jones Industrial Average rose Friday as quarterly reports from some of the biggest U.S. banks rolled in.

Dow futures were up 160 points, or 0.4%. S&P 500 futures gained 0.1%, while Nasdaq-100 futures traded near the flatline.

JPMorgan Chase rose more than 2% in the premarket after posting better-than-expected earnings. The bank was boosted by higher interest rates and rising interest income. Wells Fargo also rose more than 3% in the premarket on the back of better-than-expected earnings.

Traders will also be watching for June import prices and preliminary July results from the latest University of Michigan consumer sentiment report, both due out in the morning.

The market is saying there’s even less chance of the Federal Reserve raising rates again after the July 26 policy meeting in the wake of Thursday’s softer-than-expected June producer prices, which followed Wednesday’s softer-than-expected June consumer prices.

The chance that fed funds will stand at 5.50%-5.75% by the end of the central bank’s Sept. 20 meeting shrank to 11.1% Thursday from 13.2% Wednesday and 27.5% one week ago, according the CME’s FedWatch tool, which tracks positions of interest rate traders. Odds on that second quarter-point move by the end of the Nov. 1 meeting dropped to 18.9% from 26.7% Wednesday and 40.2% a week ago.

Portfolio:

We enter the last trading session of the week holding set-ups in NIO, PTON, UPST, S, and EXEL.  Very nice week.  Watching price activity closely in these and also the queue continues to ignite with set-ups emerging.  This market is in MONSTER territory and the next several months should provide absolute outstanding trading.  Cannot state this enough; the time is now to take advantage of this market.  Be ready today and absolutely come ready for the start of a new trading week on Monday!