- Pivot & Flow
- Posts
- July 16th Market Overview
Happy Tuesday, everyone. To me the technical on the indices indicate a interim top but I will stay diligent watching price action and order flow.
Lets dig in…
Executive Summary
Fed Chairman Jerome Powell’s comments suggest inflation control success and a balanced labor market, propelling stock indices higher.
Retail sales data due today; market shows strong positioning in Gold and Silver, weak in Oil.
Amazon sees a strong bullish positioning despite temporary pullbacks and significant insider selling by Jeff Bezos.
Bank of America and UnitedHealth report strong earnings, surpassing expectations and reaffirming guidance.
Market Overview
S&P 500 (SPX): Hit an All-Time High at 5666 before settling at 5633; trading flat premarket.
Nasdaq: Almost hit 20,600 before retreating to 20,390; flat in premarket.
Dow Jones: Steady at 40,230 in premarket trading.
Gold: Showing robust upward movement and strong positioning.
Oil (WTI): Weak positioning, currently lower at $80 a barrel.
Key Market Drivers
Fed’s Powell: Confidence in returning inflation to 2%, labor market balanced. Hints at readiness to cut rates if needed.
Retail Sales Data: Expected to influence short-term positioning, particularly in Gold and Silver.
ZEW Sentiment Index: Disappoints, suggesting weakening economic expectations in Germany due to political uncertainties.
Stock Spotlight
Amazon (AMZN): Despite continued insider sales by Bezos and a temporary pullback, bullish trend remains with strong positioning in options.
Palo Alto Networks (PANW): Technicals indicate a possible breakout, with increasing bullish call options on the $360 strike.
Reddit (RDDT): Downgraded by Loop Capital; premarket movement is downward due to rejection of recent breakout attempt.
Match Group (MTCH): Gains on news of a 6.6% activist stake by Starboard Value, joining Elliott and Anson Funds.
Datadog (DDOG): Mizuho raises price target; reiterates outperform rating due to expectations of revenue growth and market leadership.
Other Magnificent 7 Updates
Amazon (AMZN): Facing pressure from substantial insider sales, but the long-term outlook remains positive with strong option positions.
Tesla (TSLA): Robotaxi event delayed; analyst maintains ‘perform’ rating despite AI platform delay.
Other Notable Company News
Palantir (PLTR): Downgraded by Mizuho due to visibility concerns despite recent performance, target raised slightly.
Intel (INTC) and TSMC: Collaboration on next-gen AI chip, Falcon Shores.
Boeing (BA): Jefferies reiterates Buy rating, highlighting potential upside in stock price due to improved production milestones.
Sector Watch
Technology: Mixed news with downgrades on Zscaler (ZS) but upgrades on Datadog (DDOG) and Shopify (SHOP).
Retail: Dollar Tree (DLTR) downgraded by Piper Sandler due to potential adverse impacts from the upcoming presidential election outcome.
Healthcare: UnitedHealth (UNH) reports strong earnings despite cyberattack impacts; reaffirms full-year guidance.
Bond Market
No significant bond market updates today.
Policy Watch
Fed’s Powell Remarks: Indicated a potential rate cut before inflation falls to 2%, emphasizing balanced economic mandates.
Political Developments: Trump’s choice of JD Vance as VP candidate and Musk’s financial support for Trump PAC; Biden poised to secure the Democratic nomination.
- JB
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