May 17, 2022

Markets:

U.S. stock futures were sharply higher on Tuesday morning as the market tried to bounce after a punishing bear market for the tech-heavy Nasdaq and a 19% pullback for the S&P 500.

Those gains come on the back of several big movers in Tuesday premarket trading. Citigroup shares jumped 5% in premarket trading after a filing revealed Monday evening that Warren Buffett’s Berkshire Hathaway added a nearly $3 billon stake in the struggling bank in the first quarter.

Travel stocks popped in the premarket after United Airlines raised its revenue outlook for the second quarter on improved consumer demand. United Airlines’ stock price rose 4%, Delta’s jumped 3% and American Airlines’ jumped 3%.

Semiconductor stocks climbed higher in premarket trading. Shares of Advanced Micro Devices jumped more than 3% following an upgrade from Piper Sandler, which said the stock looked attractive after falling 34.5% this year. Nvidia’s stock price rose 3%, Qualcomm’s jumped 2.4% and Micron Technology’s rose 2%.

Meanwhile, Walmart shares dropped more than 5% in the premarket after the retail giant reported an earnings miss because of inflation pressure. The company raised its sales outlook, but lowered its profit forecast.

Tuesday’s gains come after a strong overnight session in Asia, as traders cheered encouraging Covid news out of China. Tuesday marked the third straight day that Shanghai — a key economic hub in the country that has been hit with a strict Covid lockdown — did not record a virus infection outside of the city’s quarantine zones.

Investors were also watching out for retail sales numbers hitting at 8:30 a.m. ET. Those figures will give a clue as to how well the consumer is faring with surging U.S. inflation that has prompted the Federal Reserve to tighten monetary policy.

Portfolio:

We enter the new trading session holding positions in DKNG, ATI, and holding ITRM. We will most likely be adding today as the queue is lighting up with potential set-ups materializing. Today we have Powell and Bullard speaking. We will also receive retail sales numbers at 8:30am. These events will be market drivers. We saw the constant rollercoaster type of market action yesterday as we feel traders were trying to position themselves for today and a bit beyond. Today should provide us a bit of a runway to trade with potential strong price momentum across a number of sectors. Let's see how the markets react today! Be ready today! Let's have a great session.