November 10, 2022

Markets:

Stock futures inched higher Thursday as investors awaited new inflation data and eyed U.S. election results.

It follows a day of losses with the Dow dropping 646.89 points, or 1.95%. The Nasdaq Composite and S&P 500 shed nearly 2.5% and about 2.1%, respectively.

The declines came amid uncertainty stemming from U.S. midterm elections. The market had hoped Republicans would take sweeping control of the House of Representatives and the Senate on Tuesday – a situation that would create gridlock in Washington, D.C. Instead, key Senate races in Arizona, Georgia and Nevada remain tightly contested. Indeed, the Senate race between Raphael Warnock, the Democratic incumbent, and Herschel Walker will head to a December runoff.

Stocks’ suffering worsened late Wednesday after crypto exchange Binance said it’s backing out of plans to acquire its rival FTX. This dragged down the tech sector and pulled bitcoin’s price to lows last seen in 2020.

October’s CPI report, due Thursday at 8:30 a.m. ET, is the next focal point for investors. Economists polled by Dow Jones expect that headline CPI rose in October by 0.6% from September, or 7.9% over a year ago. It’s a key report for the Federal Reserve, which will meet again in mid-December.

Weekly jobless claims are also due out on Thursday morning.

Portfolio:

What a morning we have in place; mid-term elections still rolling in, CPI numbers to come, Jobless claims numbers, as well as digesting the crypto news we've been receiving regarding FTX.  

We enter the day holding positions in PAYO, TWNK, and SNAP.  This morning we want to be patient and allow the markets to digest the data to come.  Once received, we continue on with pinpointing opportunity. We love to see the queue igniting and this data should provide next level set-ups to come now as well.  Be ready today and let's have a great session.