August 15, 2022

Markets:

U.S. equity futures were lower Monday, putting Wall Street on track to take a breather after another positive week, as traders braced for big retail earnings.

Monday’s moves come after disappointing economic data out of China overnight. The country’s central bank also cut rates unexpectedly, raising concern over China’s economic recovery.

Last week the S&P 500 advanced 3.25% to notch its fourth positive week in a row and its longest winning streak since 2021. The Nasdaq Composite ended the week 3.08% higher, also for its fourth straight week. The Dow added 2.9%.

The gains came after economic data showed inflation pressures could be easing a bit. The consumer price index was flat from June to July, the producer price index showed a surprise decline and import prices fell more than expected.

Investors are looking ahead to a week of earnings from big retailers including Home Depot, Walmart and Target, and listening for clues on how their businesses have been affected by inflation and other macro challenges in the most recent quarter.

Retail sales data is also scheduled to be released this week.

Portfolio:

We enter the new trading week holding positions in CVE, DCGO, MLCO, WEN, and holding itrm. Absolutely outstanding week for us last week. No concerns with any of our holdings and the queue is igniting early on today. We remained patient on Friday and allowed price activity to materialize and did not want to chase into high print. We now are provided better entry points based on premarket activity should these queue positions continue to materialize. We love what we are seeing and love the potential for this market to end 2022. Be on alert today and let's have a great session!