The FOMC disappointed the market as indexes turned negative after raising rates with a unanimous vote from the committee.  Unfortunately, the news adds more pressure to the regional banking sector with PACW now looking for a solution for the rapid selloff. We have a jampacked day of earnings and economic data to keep traders guessing and investors on edge culminating with a highly anticipated AAPL report after the bell. Don’t be surprised to see a substantial gap up or gap down, as a result, Friday morning.

Asian markets traded mixed with Hong Kong’s tech-heavy index gaining 1.27% by the close.  However, with an ECB rate decision pending European markets see only red this morning as they wait.  U.S. futures suggest a mixed open ahead of a massive day of earnings data with worrisome jobs, trade, and productivity data pending.  Keep an eye on the regional banking sector with several names under attack.

Economic Calendar

Earnings Calendar

Notable reports for Thursday include ACCO, ACIW, AES, AAPL, ATI, AEP, AMH, AIG, BUD, MT, TEAM, BALL, BHC, BDX, SQ, BKNG, BWA, BMBL, CAH, CG, CARS, CVNA, CRUS, COHU, COIN, COP, CEG, DDOG, DISH, DKNG, DBX, LOCO, EOG, EXPE, RACE, FND, FTNT, FNKO, GDDY, GPRE, HII, H, ICE, IDCC, IRM, ITT, K, LAMR, LYFT, MMP, MLM, MTZ, MLCO, MCHP, MRNA, MNST, MSI, NIO, NOG, OGN, PZZA, PARA, PH, PTON, PENN, PCG, DOC, PLNT, PTLO, PWR, REGN, RKT, RCL, RYAN, SBH, SHAK, SWK, STWD, SHOP, TXRH, VMC, W, WCC, WLK, WRK, WPM, WOW, WW, XPO, YELP, ZTS.

News & Technicals’

Microsoft is rolling out a new version of its Bing search engine that will let anyone with a Microsoft account chat with a bot that uses an OpenAI artificial intelligence model. The bot can answer questions, provide suggestions and generate content based on the user’s queries. The new Bing also offers chat history, export options, and visual enhancements to improve the user experience. Microsoft plans to add third-party integrations to Bing in the future. The company hopes that the new Bing will help it gain more share in the search advertising market, where it still lags behind its competitors, according to Bernstein analysts.

PacWest, a California-based bank, is looking for ways to survive after the collapse of First Republic, another regional bank. PacWest’s stock has plunged since First Republic’s failure, which raised concerns about the health of smaller banks. PacWest said it is negotiating with several potential partners and investors who could help it weather the storm. The bank also said it had not seen any unusual deposit withdrawals after First Republic’s demise.

With a unanimous vote, the Federal Reserve increased rates by 0.25%, making its overnight policy rate 5% – 5.25%. The statement did not include a line that said, “some additional policy firming may be appropriate,” which may mean a pause at this level is possible The 2-year Treasury yield and the U.S. dollar declined but stocks also fell, as the decision disappointed investors, and the struggling regional banks. Today is a massive day of earnings data with the highly anticipated Apple report coming after the bell.  Traders will also have to deal with Challenger Job-Cut, International Trade, Jobless Claims, Productivity, and Natural Gas numbers while keeping an eye on regional bank pressures.

Trade Wisely,

Doug