October 13, 2021

Markets:

Stock futures gained on Wednesday as investors digested new earnings data and awaited a key inflation report, which will help show the extent to which rising prices have weighed on the economic recovery and corporate profits. 

Third-quarter earnings season picked up, with notable companies including JPMorgan Chase (JPM) and BlackRock (BLK) posting results before market open. JPMorgan Chase, the largest U.S. bank by assets, posted results that topped estimates on both the top and bottom lines, boosted by a larger-than-expected release of credit reserves and strong sales in the firm's investment banking and equities trading divisions.

The latest batch of economic data due Wednesday is likely to confirm that these supply and demand mismatches translated to ongoing inflationary pressures at the start of the fall. In the Labor Department's Consumer Price Index, core prices, excluding food and energy, rose by 4.0% in September over last year, coming down only slightly from June's 30-year high of 4.5%. And a broader measure of consumer prices including all categories rose 5.4% in September compared to last year, coming in at the fastest pace since 2008.

Investors are awaiting earnings reports from Bank of America, Morgan Stanley, Citigroup, Wells Fargo and Walgreens Boots Alliance on Thursday.

The Federal Open Market Committee will release the minutes from its September meeting at 2 p.m. on Wednesday. Investors will be looking for clues about timelines surrounding the central bank’s planned taper for its bond-buying program.

Portfolio:

We enter today's session holding positions in MTDR, AEHR, NOV, and continue to hold ITRM.  Today the markets are expected to swing, especially with the Fed on tap today to release it's minutes at 2pm.  Please be ready today and on alert for new updates as well as new trades possibly. Let's have a great session!