May 25, 2023

Markets:

Futures tied to the S&P 500 and Nasdaq-100 jumped Thursday as investors cheered the latest quarterly results from Nvidia. Meanwhile, Dow Jones Industrial Average futures slid after Fitch Ratings placed the United States’ AAA rating on a negative rating watch.

Nvidia shares surged 27% in the premarket trading after the artificial intelligence beneficiary gave stronger-than-expected revenue guidance for its fiscal second quarter, while also reporting beats on the top and bottom line in the previous quarter. Several analysts covering the stock hiked their price targets on the stock following the results.

Debt ceiling negotiations continued to weigh on the major averages. The talks hit a hurdle earlier Wednesday. Later, House Speaker Kevin McCarthy indicated negotiations were making progress.

raders can expect the second reading on gross domestic product in the first quarter before the open on Thursday, as well as the latest weekly jobless claims data. April pending home sales data is also on deck after the open. Economists polled by Dow Jones expect a rise of 0.8%, up from the decline of 5.2% the prior month.

Portfolio:

We enter the new trading session holding positions in ARRY, NU, ASX. Most likely will be adding today as queue is igniting with force. Our reading last week seemed spot on with driving us towards the semi sector. NVDA is absolutely igniting that sector now further. Should we get a debt ceiling agreement soon, this market can absolutely run. Our theory on the S&P continues to expand and the pain trade is clear.

Be ready and let's continue to pinpoint opportunity.