February 27, 2023
Markets:
U.S. equity futures rose Monday, as traders tried to recover some ground following the worst week of the year on Wall Street. Investors also looked ahead to another big week in retail earnings.
Stocks sank Friday and Treasury yields jumped following a bigger-than-expected increase in the latest reading for personal consumption expenditures, the Federal Reserve’s preferred inflation gauge.
The early 2023 rally seems to be fading as investors absorb the minutes of the latest Fed meeting, which reiterated the central bank’s tough stance on inflation, as well as recent comments from Fed officials cautioning interest rates could rise higher and for longer than anticipated.
In the week ahead, investors will be looking for clues about how inflation is affecting consumers and businesses amid a handful of economic data reports and corporate earnings. Durable goods orders are due out Monday morning. Consumer confidence and the ISM manufacturing survey are also on deck in the coming week.
In earnings, just 6% of the S&P 500 will report but investors are looking for insight into the consumer with several major retailers, restaurants, some travel and entertainment names as well as food companies set to report. Target, Costco, Lowe’s and Macy’s are some of the big names set to report earnings this week.
Portfolio:
We enter the new trading week and session holding positions in TNK, UNG, and VKTX. We will be looking to add to position ourselves for the month of March this week. Queue is igniting so be ready. Techncally, still in the range and until we break and hold under 3890 on the s&p, it'll be hard to be super bearish. Technicals have been golden the last several months and no one should be trying to front run the move or fight the trend. Follow the flow and allow it to ignite. We will continue to pinpoint the sectors and stocks that are filled with momemtum and opportunity. Cannot wait for the month of March and all the opportunity it can provide. Be ready today and let's have a great session.