August 3, 2023

Markets:

Stock futures slipped Wednesday, and looked poised to continue Wednesday’s selloff trend on the back of Fitch’s U.S. downgrade. Wall Street also weighed the latest batch of quarterly results.

Chipmaker Qualcomm lost 8% after the company missed analysts’ expectations on fiscal third-quarter revenue and guidance for the current period. DoorDash
added 3.6% after beating expectations on revenue, while Moderna gained on a boosted Covid vaccine outlook.

Tech bellwether Apple and e-commerce giant Amazon are slated to report after the close. Thus far, nearly 67% of the constituents in the S&P 500 have issued their latest quarterly reports, with about 81% of those companies beating expectations, according to FactSet.

Fitch Ratings cut the United States’ long-term foreign currency issuer default rating to AA+ from AAA late Tuesday, citing “expected fiscal deterioration” over the next three years as well as weakening governance. Previously, stocks were posting a strong string of gains, led by growth names.

Traders are also gearing up for more economic data, including weekly initial jobless claims and durable goods orders ahead of Friday’s July payrolls report.

Warren Buffett shrugged off Fitch’s U.S. downgrade, noting it doesn’t change what Berkshire Hathaway is doing at the moment.

Portfolio:

We enter this monster session holding positions in IOT, RIVN, IONQ, IQ, and KEY. It's all about AAPL and AMZN tonight. Two key drivers short term to this market. Filled with excitement for what this can bring and the opportunities to both sides of the trade. In our humble opinion, the most bullish scenario is taking place right now, oversold into today's action and watch reversals take place into or after AAPL / AMZN earnings. Indicators would fly across trading algos, and this is undeniable, even by the biggest bear out there.

Be on ready today and stay patient. Days like today should excite even the most passive trader for what can trigger.