October 20, 2022

Markets:

Stock futures were mixed on Thursday as traders weighed several key earnings reports.

Several strong earnings reports were boosting the market, with AT&T, American Airlines and IBM all moving higher in premarket trading after beating estimates on the top and bottom lines for their most recent quarter.

On the downside, Tesla shares dropped 4% in premarket trading after the electric vehicle maker said Wednesday evening it expects to miss its 2022 deliveries target. The company also posted a quarterly revenue that missed analyst expectations.

Meanwhile, the benchmark 10-year Treasury yield reached a high of 4.18% on Thursday, briefly trading at levels not seen since 2008. It was last flat for the session near 4.13%. Rising rates have been a headwind for stocks all year, as the Federal Reserve continues to try and cool off inflationary pressures not seen in decades.

On the economic front, the Philadelphia Fed manufacturing survey and the weekly jobless claims data are expected Thursday before the bell.

The U.K. reported a rise in the consumer price index to 10.1% Wednesday, matching the 40-year high posted by the Office for National Statistics in July. Food, energy and transport prices drove the increase.

Portfolio:

We enter the new trading session holding positions in ALLY, JKS, KLIC, and PARA.  Very nice day yesterday for our positions and we look for further follow through over the next two sessions to close the week. Continue to watch the TLT and the 10-year Treasury.  We cannot sustain any rally while the TLT continues to move down and the 10-year continues to rise.  We firmly do believe we soon will be presented with one the most outstanding trading periods to benefit from these low prices but we're just not there yet.  Right now we have room to the downside still and continue to watch our trend lines closely.  Queue is igniting and today we fully expect a new opportunity shortly. A few sectors are igniting opportunity and we want in!  Be ready today!  Let's have a great session.