July 20, 2023

Markets:

U.S. stock futures were mixed Thursday as trader weighed the latest batch of corporate earnings reports, including mixed results from Netflix.

Shares of Netflix dropped 5.5% after the streaming giant posted its second-quarter earnings report. The company posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated by analysts, according to Refinitiv.

Tesla, meanwhile, tumbled 4.1% after CEO Elon Musk and other executives said on an earnings call that vehicle production would slow during the third quarter due to shutdowns for factory improvements.

Stocks are coming off a positive session, with the Dow posting an eight-day winning streak, its longest since September 2019.

The labor market remains while manufacturing activity in the Philadelphia area deteriorated more than expected, according to economic data released Thursday morning.

First-time jobless claims totaled 228,000 for the week ended July 15, a decline of 9,000 from the previous period, according to a Labor Department report. Economists surveyed by Dow Jones had been expecting 240,000. Continuing claims increased by 33,000 to 1.754 million, more than 1.73 million FactSet estimate.

Separately the Philadelphia Federal Reserve’s manufacturing index registered a -13.5 reading, worse than -10 estimate. The figure represents the difference between companies reporting expansion against contraction, so any negative figure represents a pullback.

Portfolio:

Strong day yesterday and although the futures for the Nasdaq looks a bit weak today, would not be surprised at all to see this quickly swallowed up, digested, and a green candle to proceed. I would be shocked if by tomorrows last trading session we do not see the Q's back in the green. Opportunity continues to ignite and we love this trading environment. I hope folks see what continues to develop and the scenarios coming around the corner in August / September. This is just beginning!

We enter todays session holding setups in PENN, REAL, PLTR, PATH, NIO, S, EXEL. We will want to release a new possible trade or two over the next two sessions to position ourselves for a monster period into the close of July!