May 24, 2023

Markets:

U.S. stock futures fell slightly Wednesday as investors kept an eye on debt ceiling negotiations.

Treasury Secretary Janet Yellen previously warned lawmakers that a potential default in early June is “highly likely.” House Speaker Kevin McCarthy said he had a “productive” discussion with President Joe Biden on Monday. Nonetheless, there were few indicators of progress made in negotiations on Tuesday. 

On the economic front, investors will be watching for the minutes from the Federal Reserve’s meeting earlier in May. They will be released Wednesday afternoon. 

Investors will also be looking toward more earnings announcements. Clothing retailer American Eagle Outfitters and semiconductor giant Nvidia will be posting their results Wednesday after the bell. 

Copper fell on Wednesday to trade near its lowest level since November 28.

Mortgage applications to buy a home dropped 4% last week and 30% over the year-ago period, according to the weekly survey from the Mortgage Bankers Association.

Business sentiment at Japanese manufacturers turned positive for the first time this year, the Reuters Tankan survey for May showed.

Portfolio:

Roller coaster action the last two sessions and we highly anticipate staying within this current range until this debt ceiling is settled.  We enter the session holding positions in ARRY, NU, and ASX.  Monster week already for us and no reason to force any trades here and allow price to materalize and create new opportunities. There is a new sector beginning to flag, could potentially see now opportunity in a sector we have yet to trade this year.  Watching closely.  Tonight, NVDA earnings, will be a powerhouse for the semi sector – one of our favorite to trade.  Watching this closely as well for new trade opportunities.  Be ready and let's have a great session.