May 18, 2023

Markets:

S&P 500 futures were modestly higher Thursday as Wall Street evaluated Walmart’s quarterly earnings and hoped that the debt ceiling crisis would soon see a resolution. 

The market was helped by a nearly 2% gain before the bell from retail giant Walmart on the back of its strong financial report. The company beat Wall Street forecasts on both earnings per share and revenue in its first quarter and raised its expectations for full-year performance.

House Speaker Kevin McCarthy told CNBC’s “Squawk Box” on Wednesday that he does not believe the U.S. will default on its debt. President Joe Biden also stated in later remarks that he was confident lawmakers would come together to reach a deal and avoid a default. 

Initial jobless claims unexpectedly declined last week, indicating the labor market still has some tightness.

In other economic news, the Philadelphia Federal Reserve’s manufacturing index for the region rose to -10.4, an increase of 29 percentage points and better than the estimate for -20.

Japanese markets extended their winning streak on Thursday, with the Nikkei 225 leading gains in the region and continuing to trade above the 30,000 mark.

Portfolio:

We enter the new trading session holding set-ups in INDI, S, TQQQ, and TSLL.  Outstanding day yesterday and we continue to pinpoint opportunity.  Market is so close to testing 4200 on the S&P.  We cheer this test and want to see the upside breakout confirmed.  Next line would be 4350 and should we dare break and hold that….it's a monster rally in place.  The true pain trade that many continue to hate.  Be ready and let's have a great session.