November 17, 2022

Markets:

Stock futures fell Thursday as investors responded to the latest batch of quarterly results and awaited a slew of Federal Reserve speakers.

Retailer Bath & Body Works jumped more than 20% after it beat revenue expectations and doubled what was anticipated for per-share earnings. Cisco was up more than 3% after beating both earnings and revenue estimates. Macy’s popped 8% after surpassing expectations in its third-quarter results.

The latest moves followed a down day on Wall Street, the second in three days. The S&P 500 and Nasdaq Composite fell 0.83% and 1.54%, respectively. The Dow Jones Industrial Average lost 39.09 points, or 0.12%.

Downward pressure emerged from weak guidance from Target, which reported a decline in sales as inflation pinches shoppers heading into the holiday season. The Minneapolis-based chain ended 13% lower, while its forward guidance cast doubt on other retailers.

Investors will also watch tomorrow for weekly jobless claims, the latest reports on on October housing starts and building permits, and manufacturing surveys from the Philadelphia and Kansas City Federal Reserve banks.

Fed speakers will talk at events across the country Thursday.

The list includes:

Fed Chair Jerome Powell
Atlanta Fed President Raphael Bostic
St. Louis Fed President James Bullard
Cleveland Fed President Loretta Mester
Minneapolis Fed President Neel Kashkari
Chicago Fed President Charles Evans
San Francisco Fed President Mary Daly
New York Fed President John Williams
Fed Governor Philip Jefferson
Fed Governor Michelle Bowman

Portfolio:

We enter the new trading session holding one position in AI and FUBO. Today we have a number of Fed speakers talking at events and these will be closely monitored. Patience is needed today and expect swings. But nothing has changed technically just yet. Allow the markets to breath and settle and then we proceed with next level technical set-ups. We did break below 3950 on the S&P and now the next short-term level we are watching closely is 3902. A break and hold there would warrant short term adjustments but with a holiday week approaching and historically being a very positive week for the markets, patience is needed here. Be ready today!