October 18, 2023

Markets:

Stock futures dropped Wednesday as earnings season gained steam and Wall Street looked ahead to key financial reports.

Shares of United Airlines fell more than 4% in premarket trading on soft guidance, while Procter & Gamble rose 1% after beating analyst expectations for the quarter. Netflix and Tesla are on deck after the market closes on Wednesday.

Tuesday’s moves came as bond yields popped on stronger-than-expected September retail sales, and the yield on the 10-year U.S. Treasury note hit its highest level since Oct. 6. Chip stocks such as Nvidia and Advanced Micro Devices sold off as the U.S. announced plans to tighten restrictions on AI chip exports to China.

Wall Street continued to assess the impact of the ongoing Israel-Hamas war.

On the economic front, Wall Street awaits housing starts and building permits data for September.

Portfolio:

We enter the new trading session holding set-ups in IONQ, PLUG, NTNX, PATH, and AX. Markets continue to swing day to day over the last several sessions, but the overall trend remains firmly intact. Tonight we welcome earning reports from two monsters with NFLX and TSLA. We welcome these reports for insights into the economy, outlook, and to see if we can propel the overall trend into overdrive. Yesterday we witnessed large number of upside call lots being purchased across the board in software names, the SPY, and other sectors we closely monitor. Be on alert today and be ready!