October 25, 2021

Markets:

Stock futures pointed to a slightly higher open Monday morning as investors awaited a slew of earnings results from the Big Tech companies, as well as a myriad of other corporations across industries this week. 

U.S. West Texas intermediate crude oil prices jumped to close in on $85 per barrel Monday morning, reaching its highest level since 2014. The move tracked gains in Brent crude, the international benchmark, which jumped above $86 per barrel for its highest level since 2018 after Saudi Arabia's energy minister suggested in a Bloomberg interview that oil producers exercise caution in boosting output despite fast-rising prices. 

The benchmark 10-year Treasury yield hovered above 1.66%, or its highest level since May, as inflation concerns remained front and center for investors amid rising energy and commodity prices and other price gains across the recovering economy. Last week, Federal Reserve Chair Jerome Powell said the elevated inflationary pressures spurred by supply chain constraints were "likely to last longer than previously expected, likely well into next year."

This week's earnings results will center on those from the Big Tech companies including Facebook (FB), Apple (AAPL), Amazon (AMZN) and Alphabet (GOOGL). These comprise some of the most heavily weighted components of the S&P 500. Most have underperformed the market this year after significant rallies in 2020 at the height of stay-in-place orders and demand for technology to stay connected. 

Portfolio:

We enter today's new trading session holding positions in SKLZ, F, FUBO, and ITRM.  We will be looking to add to our holdings this week so please be on alert.  Last week we experienced a number of swings within the market as investors / traders position themselves for the weeks to come, especially with big tech earnings on tap this week.  We should be provided with ample trading opportunities to end the year based on results from this week.  Please be ready for further updates as well as a new trade alert or two.  Let's have a great trading session.