September 14, 2023

Markets:

Stock futures climbed Thursday morning as traders prepared for the August producer price index, a measure of wholesale inflation.

The August reading of the consumer price index was a key event for traders. The core CPI, which excludes food and energy, gained 0.3% from the prior month and 4.3% from 12 months earlier. That compares against estimates of 0.2% and 4.3%, respectively, according to economists polled by Dow Jones.

Headline inflation increased 0.6% on a monthly basis and 3.7% from the prior year, while economists had called for 0.6% and 3.6%.

The August CPI reading isn’t expected to change the Federal Reserve’s course at its policy meeting beginning Sept. 19. Fed funds futures pricing data from Wednesday shows a 97% likelihood of rates remaining unchanged next week, according to the CME FedWatch Tool.

Another inflation metric looms ahead Thursday: the August reading of the producer price index. It is expected to have risen 0.4%, per economists polled by Dow Jones. In July, wholesale prices climbed 0.3%, surpassing expectations. Retail sales and jobless claims are also due before the open.

In the world of earnings, Adobe is expected to post quarterly results after the market close Thursday.

Portfolio:

We enter the new trading session holding set-ups in UPST, ATEN, and WW.  It continues to amaze us the headlines we continue to receive on a daily basis.  We're about 9 months into "the selloff is coming for new lows" calls while the market continues to provide massive opportunity.  New technology and sectors continue to drive but yet folks continue to want to focus on backwards data.  Pain trade remains.  Everything is so coiled into todays number.  Really curious to see how this plays out.  Just take a look at MSFT, AAPL, NFLX, NVDA, AMZN, etc and see the pattern / trend?  Silence the noise, ride the trends.  

Be ready today and let's continue to march towards this monster close to 2023.