On Thursday, stock market futures declined with Wall Street grappling with uncertainty after several volatile sessions. All three major indices have now fallen in four of the past five trading days. Investors remain cautious due to ongoing economic concerns, geopolitical tensions, and the upcoming November elections. Market participants are closely monitoring Thursday’s weekly jobless claims and a slew of earnings reports, which could influence market sentiment.

European markets experienced a downturn, struggling to maintain positive momentum. The technology sector saw a significant decline, shedding 1.85%, while mining stocks also pulled back by 1.39%. The absence of major data releases contributed to the lackluster performance, leaving investors without new information to drive market sentiment.

Asia-Pacific markets largely mirrored the downturn seen on Wall Street, with most indices closing in the red. In a widely anticipated move, the Reserve Bank of India maintained its key interest rate at 6.5% for the ninth consecutive meeting, aligning with economists’ expectations. Meanwhile, Mainland China’s CSI 300 index managed to recover from earlier losses, finishing the day nearly unchanged at 3,342.94.

Economic Calendar

Earnings Calendar

Notable reports for Wednesday before the bell include FOLD, CARS, LNG, CHH, CCOI, COMM, CYBR, DDOG, LLY, FA, ULCC, GERN, GDRX, HBI, HGV, HIMX, INSM, IRWD, KELYA, KOP, DNUT, LAMR, LFST, MLM, MDU, MUR, NXST, NRG, PZZA, PAR, PH, PENN, PLL, PLUG, PRVA, SBH, SEE, SN, TNC, TKO, UAA, USFD, VTRS, VITL, WD, WRBY, XPEL & YETI.  After the bell include AKAM, ALRM, AMN, AMPL, ARLO, ARRY, ARWR, BE, CPRI, CARG, CPK, CLSK, COLL, CEIX, CYTK, DOCN, DIOD, DEI, DOCS, DBX, ELF, EVH, EXPE, FIVN, FNKO, G, GILD, GDOT, IOVA, MERC, MLNK, NTRA, NWSA, NUS, LPRO, PARA, PAY, PBA, PBI, PUBM, RXT, TBA, RKLB, SVV, SSP, SOLV, SOUN, STEP, SLF, SG, SYNA, TTWO, TTGT, SKIN, TTD, TTEC, U, VIAV, WEST, WPM, & YELP.

News & Technicals’

Walmart, McDonald’s, and Kroger have become focal points in the political debate over rising prices and other financial pressures affecting American consumers. Politicians on the campaign trail are leveraging public frustration with high costs, though Republicans and Democrats attribute these issues to different causes. According to Cait Lamberton, a marketing professor at the University of Pennsylvania’s Wharton School, pledging to address everyday expenses is a strategic move, especially for politicians in swing states, during these contentious times.

A state of emergency has been declared in Kursk due to a Ukrainian incursion into the Russian border region. Acting regional Governor Alexey Smirnov reported that the “operational situation” in the border areas of Kursk remained “complicated” as of Wednesday. This development underscores the ongoing tensions and instability in the region, highlighting the challenges faced by local authorities in managing the security situation.

Following the assassination of its former political chief, Ismail Haniyeh, Hamas has appointed Yahya Sinwar as the leader of its political wing. Sinwar, known for his ruthlessness and widely regarded as the mastermind behind the October 7 attack, now stands as the most powerful figure within the organization. The transition to a more hardline leader in the wake of Haniyeh’s killing is expected to significantly diminish the prospects for a cease-fire, further complicating the already tense situation.

On Thursday, German industrial technology giant Siemens reported a quarterly operating profit that exceeded expectations, reaffirming its full-year outlook. The company achieved an industrial profit of 3 billion euros ($3.3 billion) for the quarter ending in June, marking an 11% increase compared to the same period last year. This strong performance underscores Siemens’ resilience and effective strategies in navigating the current economic landscape.

Jobless claim and a huge number of earnings will likely be very important in shaping Thursday’s market sentiment while grappling with uncertainty of the economy, political landscape and geopolitical pressures.  With the VIX closing above 27 plan for the challenging price action conditions to continue.  

Trade Wisely,

Doug