Market Rap 02/07/23 by CTG
SPY / QQQ / Vix
S&P futures tightening up sideways in the middle of yesterdays range, ahead of Powell's speech at 12:40et 411.29 the corresponding futures high
409.21 the corresponding futures low
Daily consolidation continued yesterday with a gap down open that filled late morning. Heading closer to test the daily 12ema(white) with an indecision doji candle going in by close. Testing the top end of the previous break out area. (support)
408.10 the low from yesterday and first support
405.79 the daily 12ema
400.28 the last daily "higher low" and spot for bulls to stay anywhere above to keep the uptrend intact (resistance)
QQQ 5 days, hourly candles Nasdaq futures also tightening up sideways in the middle of yesterdays range 305.09 the pre mkt low
302.90 the corresponding futures low
QQQ 3 months, daily candles Daily consolidation/cooldown from overbought RSI conditions continued yesterday, filling the 2/1-2/2 open gap. (support)
302.22 the low from yesterday
296.11 the daily 12ema(white)
291.28 the 200 day MA (purple)
289.89 the last daily "higher low" and spot for bulls to stay anywhere above, in order to maintain the uptrend on this timeframe(resistance)
305.91 the high from yesterday
Feb. Vix futures 3months, daily candles The oversold RSI bounce is pausing here at the daily 12ema(white) so far. Watching for any convincing push over to show us "this time is different".
Spot Vix 3 months, daily candles Hit its head on the 20 area yesterday, inside bar day so far today within yesterdays tight range. Watching to see which way that inside bar breaks for clues on broad market direction.
$DXY 3months, daily candles Testing the 50 day MA(blue) here
TLT 3months, daily candles Threatening a bear break lower here (as longer term rates rise) but no follow thru yet; Still above the 50 day MA(blue) also.
https://www.briefing.com/stock-market-update [BRIEFING.COM] S&P futures vs fair value: +3.50. Nasdaq futures vs fair value: +42.50.The S&P 500 futures are up 2 points and are trading roughly in line with fair value. The Nasdaq 100 futures are up 36 points and are trading 0.3% above fair value. The Dow Jones Industrial Average futures are down 47 points and are trading 0.1% below fair value.
The equity futures market is mixed as investors await Fed Chair Powell's "Conversation with David Rubinstein" before the Economic Club of Washington D.C. at 12:40 p.m. ET. On a related note, Minneapolis Federal Reserve President Neel Kashkari (FOMC voter) said on CNBC "Central banks have not made enough progress" and reaffirmed his Fed funds rate target of 5.4% following the surprising January jobs report.
Investors continue to deal with a nagging sense that the Fed will raise rates more than expected and keep them there for longer than expected.
Overseas, the Reserve Bank of Australia increased its cash rate by 25 bps to 3.35%, as expected, and noted that additional increases will be needed in the coming months.
President Biden will deliver the State of the Union Address tonight at 9:00 p.m. ET.
The 2-yr Treasury note yield is down four basis points to 4.42% and the 10-yr note yield is flat at 3.63%.
Market participants will receive the December Trade Balance Report at 8:30 a.m. ET (Briefing.com consensus -$68.5B; prior -$61.5B) and the December Consumer Credit Report at 3:00 p.m. ET (Briefing.com consensus $24.5B; prior $27.9 bln). In corporate news:
BP (BP 36.35, +1.51, +4.3%): misses by $0.01, beats on revs; raises dividend
Oak Street Health (OSH 35.43, +9.47, +36.5%): CVS (CVS) nearing deal to acquire the company for $10.5 bln, according to WSJ
Chegg (CHGG 16.10, -4.93, -23.4%): beats by $0.02, beats on revs; guides Q1 revs below consensus; guides FY23 revs below consensus
DuPont (DD 70.96, -1.40, -1.9%): beats by $0.11, reports revs in-line; guides Q1 EPS below consensus, revs below consensus; guides FY23 EPS in-line, revs in-line; increases Q1 dividend by 9% to $0.36/share
Pinterest (PINS 27.53, -0.36, -1.3%): beats by $0.01, misses on revs; expects Q1 revs to grow low single digits percentage yr/yr vs consensus of +7.5%; authorizes repurchases up to $500 mln over next 12 months; CFO stepping down, effective July 1
Skyworks (SWKS 112.75, +3.47, +3.2%): misses by $0.01, reports revs in-line; guides MarQ EPS below consensus, revs below consensus; approves $2.0 bln for share repurchases; authorizes $2.0 bln for share repurchases through February 1, 2025
Baidu (BIDU 161.77, +18.95, +13.3%): aiming to introduce service similar to ChatGPT in March, according to Bloomberg
Bed Bath & Beyond (BBBY 4.06, -1.80, -30.7%): proposes underwritten public offering of Series A convertible preferred stock and warrants to raise approximately $1.0 billion