August 7, 2023

Markets:

Stock futures rose Monday morning as investors readied for a week with more corporate earnings and key inflation readings.

The moves follow a losing week on Wall Street. The Nasdaq Composite and S&P 500 slid about 2.9% and 2.3%, respectively, marking their worst weeks since March. The Dow finished the week about 1.1% lower.

Monday kicks off the latest leg of what has broadly been considered a better-than-expected corporate earnings season. Of the 84% of companies in the S&P 500 that have posted their quarterly results, about four-fifths have exceeded Wall Street forecasts, according to FactSet.

Later in the week, investors will shift focus to the release of July consumer and producer price index data. Both are closely watched given their connection to the path of inflation and the health of the economy.

The indexes have been watched with particular interest amid the Federal Reserve’s rate-hiking campaign as investors try to predict how the central bank will move policy going forward. The readings follow last week’s employment data, which showed there was less job growth than economists expected in July.

Portfolio:

We enter the new trading week holding setups in CVE, IOT, IQ, and KEY. Last week this market was cutting both sides of the trade. Some wild swings intraday but yet the overall trend still remains. But, we are watching price action closely and looking to see if other sectors now begin to lead. Critical week amongst several sectors and leaders. Be on alert and ready for further updates and potential new trade alerts. Let's have a great session and week.