February 29, 2024

Markets:

Stock futures fell as Wall Street weighed the latest earnings results and looked ahead to the Federal Reserve’s favored inflation gauge.

Salesforce slipped 1% on weak revenue guidance, while Snowflake shed 22% after announcing the retirement of its CEO. Okta popped 26.8% on strong results.

Wall Street anxiously awaits Thursday’s personal consumer expenditures reading for January. Economists are bracing for a 0.3% monthly gain and a 2.4% year-over-year move. A higher-than-expected print could dent equities and signal that recent hot consumer price index and producer price index releases were on trend.

Thursday’s session caps off February trading and another positive month for the three major averages, despite a string of declines raising questions around the sustainability of the AI-driven rally. The Nasdaq is leading the pack with a 5.2% gain. The S&P 500 has jumped 4.6%, while the Dow has added 2.1%. This would mark the Dow’s first four-month winning streak since May 2021.

Other key economic figures are due out, including personal income data for January, Chicago purchasing managers index data for February and the pending home sales index for January. New York Federal Reserve Bank President and CEO John Williams is also slated to moderate a discussion in the evening.

Portfolio:

We enter this monster session holding set-ups in SOUN, SOFI, NU, PATH, TSLL, PLTR. We are locked in for the PCE number and how we react through the day to it. Nothing more to say other then stay patient and let price develop. 

Please be ready today for other updates and a potential new trade alert. We expect swings today but the expected reaction is higher afterwards. Large lots of trades were going off yesterday positioning for Megas and even stocks like Nividia to run higher by 30 to 50% over the next several months. Watching this closely on how every pullback is being utilized to add size to the upside.