U.S. futures point to a mixed bag this morning, with the QQQ gapping higher after the strong earnings performance from MSFT, while the Dow points to a substantial gap down.  Although AMD and TXN topped earnings expectations, they indicate a lower this morning.  With a big day of earning and economic data that includes an FOMC announcement, traders should prepare for just about anything to occur in price action.  It would not be a surprise to see more index gaps tomorrow with AAPL, TSLA and FB reported after the bell today. 

Asian markets closed overnight with mixed results after the IMF raised the global economic growth forecast.  However, European markets trade decidedly bearish this morning as they keep an eye on earnings results.  U.S. indexes face a mixed open ahead of a blizzard of market-moving data.  Buckle up it could be a wild ride for the next couple of days.

Economic Calendar

Earnings Calendar

As the number of earnings ramp-up, the Wednesday calendar adds more market-moving tech reports.  Notable reports include TSLA, ABT, AMP, ANTM, AAPL, T, ADP, BX, ADP, BX, BA, EAT, CP, GLW, CREE, CCI, DRE, FB, GD, HES, LRCX, LVS, LEVI, MKTX, NDAQ, NSC, NG, PKG, NOW, SYK, TER, VFC, & WHR.

News & Technicals’

A strong round of tech earnings after the bell sees the QQQ popping higher as MSFT add sales surprised the market.  However, we face a mixed bag of index reactions this morning.  As you would expect, MSFT is indicated sharply higher at the open but, the good vibes seem to stop there with AMD, and TXN indicated lower despite topping expectations.  President Biden orders an additional 200 million doses of vaccine and suggests that things are likely to worsen before getting better.  He went on to say an expectation of half a million deaths by the end of February is possible after yesterday’s death toll topped 4000 once again.  Goldman Sachs CEO David Solomon will see his pay cut by 10 million after the company admitted wrongdoing in the 1Malysia Development Berhad scandal.  That’s roughly 36% of his yearly salary, and, of course, no one will go to jail. 

Today we traders face a blizzard of data beginning with Durable Goods Orders and FOMC Announcement and a huge round of earnings that will include APPL, TSLA & FB after the bell.  Futures are all over the place this morning, with the Dow indicating a gap down of 200 points while QQQ points to a gap higher.  Expect the wild volatility to continue, but don’t be too surprised if price action becomes choppy after the open as we wait for Powell and the highly anticipated reports after the close.  Anything is possible, so stay focused and flexible as the drama unfolds. 

Trade Wisely,

Doug