July 6, 2022

Markets:

U.S. equities futures were little changed on Wednesday morning after the market staged a big midday reversal on Tuesday, with falling bond yields giving a boost to growth stocks, and ahead of a batch of economic data.

In regular trading, the Dow lost 129 points to start the holiday-shortened week, trimming steeper losses from earlier in the session. The S&P 500 rallied back from a 2% loss in the final hour of trading and finished the day up 0.2%. The tech-heavy Nasdaq Composite outperformed, jumping 1.75%.

Whether the economy is about to fall into a recession continued to worry investors after the benchmark 10-year U.S. Treasury yield fell below the 2-year yield. The so-called yield curve inversion historically has been a warning sign that the economy may be falling or has already fallen into recession.

Oil prices tumbled below $100 a barrel Tuesday, further reflecting a potential economic slowdown. Energy stocks were the top decliners Tuesday. The sector as a whole fell 4%. It was the top performing sector in the S&P 500 for the first half of they year, the benchmark index’s worst first half since 1970.

There are no major earnings reports scheduled for Wednesday, but there will be a slew of economic reports coming out, including the minutes of the Federal Reserve’s June meeting in the afternoon.

Positions:

We enter the new trading session holding positions in APPS, ALLY, and holding ITRM.  Really nice start to the week for us yesterday. Queue continues to ignite, and we will be looking to release new opportunities today. Our only concern is the Fed minutes to be released this afternoon. Trading wise, we have beautiful trends in place and want to take full advantage of it. Please be ready today for updates and new trade set-ups. Let's have a great session.