May 5, 2022

Markets:

Stock futures fell in early morning trade Thursday, putting Wall Street on track to give back some of sharp gains seen in the previous session after the Federal Reserve raised rates by half a point.

The moves come after a major rally for stocks on Wednesday. The Dow Jones Industrial Average on Wednesday rose 932 points, or 2.81%, and the S&P 500 gained 2.99% for their biggest gains since 2020. The Nasdaq Composite jumped 3.19%.

Stocks rose for a third straight day to start the month, after the Fed increased its benchmark interest rate by 50 basis points, as expected, and said it would begin reducing its balance sheet in June. However, Fed Chair Jerome Powell said during his news conference that the Fed is “not actively considering” a larger 75 basis point rate hike, which appeared to spark a rally.

Even after stocks rallied to finish the day, the market saw big moves on the down side after hours as companies continued reporting financial results for the last quarter. Etsy tumbled more than 12% and eBay lost 5.8% in extended trading, on lighter-than-expected revenue guidance for the second quarter. Meanwhile, Booking Holdings shares advanced more than 8% after hours.

In economic data, investors will be eyeing jobless claims data, which is due out at 8:30 a.m.

Portfolio:

We enter the new trading session holding positions in UNG, PLTR, AR, and holding itrm.   Very nice day yesterday for the markets, set-ups, and our holdings.  Strong profit booked wiht ON for us yesterday as well.  We will be looking to add today as queue is igniting right now.  Volatility within specific names and sectors are roaring.  We would love to see momentum behind these names now after todays open and what we will be watching early on.  Be ready today and let's have a great session.