February 6, 2024

Markets:

S&P 500 futures hovered around the flatline Tuesday following a sell-off spurred by higher bond yields and worries that the Federal Reserve may not cut rates as much as Wall Street had hoped.

Eli Lilly popped about 5% on strong earnings driven by weight loss drugs, while shares of Palantir Technologies surged 17% after the company posted a revenue beat in the fourth quarter. NXP Semiconductors rose more than 2% on better-than-expected results.

On Monday, the S&P 500 lost 0.32%, pulling back from its record high reached last week. The decline in stocks came after Federal Reserve Chair Jerome Powell reaffirmed that a rate cut at the central bank’s March meeting is unlikely. His comments, which were aired on “60 Minutes” Sunday night, led to the 10-year Treasury yield rising about 13 points Monday to 4.16%. Fresh economic data also pushed yields higher.

On the economic front Tuesday, Wall Street will be keeping an eye out for the New York Fed’s household debt and credit report for the fourth quarter. Several central bank speakers are slated to give comments, including Cleveland Fed President Loretta Mester and Boston Fed President Susan Collins. 

Tuesday marks around the halfway point of the earnings season, with reports from Amgen, Chipotle Mexican Grill and Ford after the bell.

Portfolio:

We enter the new session holding set-ups in SOFI, IONQ, SKLZ, STNE, and IOT.   Queue is igniting and we have certain sectors showing so much strength.  The best part of this move over the last several months; funds need to chase performance now.  The next 2 years can get so explsoive for this market.  I would not count out over 6k on the S&P.  PLTR, not even an AI leader – not close – was saying they couldn't even keep up wth the demand.  Early stages! We had folks fight our call of S&P reaching 4500 in 2023 and the move it would maeonce it held it.   Those that are open to the change happening will profit for the next few years, those that refuse to see it will be left holding the bag and asking why they didnt get involved.  Our hope is, we can continue to idnetify opportunity for you and as a community we continue to lead.  Do not chase, treat every trade the same and it will build.  Monster opportunity ahead over the next two years.  Let's have another productive day!