September 6, 2022

Markets:

Stock futures rose Tuesday as traders aimed to start the holiday-shortened week on a strong note.

On Friday, the major averages closed out their third negative week in a row. The Nasdaq Composite posted its first six-day losing streak since 2019, ending the session 1.3% lower, while the Dow erased a 370-point gain on Friday to close about 1.1% lower. The S&P shed 1.1% to its lowest close since July.

In the holiday-shortened week, investors are looking ahead to speeches from Federal Reserve presidents and a fresh rate hike decision from the European Central bank due out later this week. August PMI services and ISM services data are slated for Tuesday.

U.S. Treasury yields were higher as market participants awaited a fresh batch of economic data and Treasury auctions following Monday’s Labor Day recess.

The yield on the benchmark 10-year Treasury note rose over 7 basis points to 3.265% at around 3:40 a.m. ET, while the yield on the 30-year Treasury bond gained 6 basis points to 3.408%.

European markets climbed on Tuesday, recovering the previous session’s losses as investors continued to assess recession risks in the region.

Portfolio:

We enter the new trading week holding positions in COMM, SPWR, FIGS, and CNHI. Yesterday morning you would have thought our trading week would start in deep red. Rather, we sit here firmly in the green in premarket and energy stocks soaring. We were right in many of our energy plays last week, just a shame we lost a few with the two-day turn. Today we also welcome back volume! Traders are back and this is the time of year we begin to see increase in trading volumes as traders begin to position themselves for yearend moves. We love this time of the year! Be ready today and let's have a great session.