A deluge of big tech reports, GDP and Jobless claims have come together to create the perfect storm of uncertainty.  Today could be very challenging, but the Friday open has the potential to be very wild, and no one knows if the bulls or the bears will leading the charge.  Anything is possible, so consider the risk carefully you carry into today’s close.  Can they produce earnings strong enough to support current prices?  We will find out after the bell today.

Asian markets closed modestly bearish across the board overnight in reaction to the FOMC rate decision.  European markets trade cautiously this morning, leaning slightly into the red.  US Futures are decidedly bearish this morning, pointing to a gap down open ahead of earnings, GDP and jobless claims.  Buckle up the next 24 hours have the potential to be very volatile.

Economic Calendar

Earnings Calendar

All eyes will be on the big tech earnings reports after the bell today.  Overall we have more than 250 companies reporting their quarterly results will make it our busiest day so far this season.  Notable reports include FB, AMZN, AAPL, GOOGL, AMT, BUD, MT, AZN, TEAM, BAX, CARS, CC, CI, CLF, CMCSA, COF, COR, CS, CROX, DECK, DNKN, ELAN, EA, LLY, EXPE, F, FTS, GPC, GILD, GRUB, HBI, HST, K, KHC, LIN, LTC, MA, MGM, TAP, MCO, NEM, NOC, PG, PFPT, RDFN, SHAK, SIRI, SO, SWK, SYK, SYK, TW, UPS, X, VLO, VRTX, WM, WWE, XLNX, & YUM.

News & Technical’s

This morning we will likely get an historic reading on the GDP with numbers near the World War 2 economic impacts.  The question to be answered is the number already baked into the market’s pricing, or will there be a strong reaction.  At the same time will get the latest details on Jobless claims that could begin to creep back up due to the second wave virus impacts.  The FOMC yesterday decided to stand fast on interest rates and said the direction of the economy will be tied directly to the length and duration of the pandemic.  There are likely to be a lot of fireworks after the bell today as FB, AMZN, APPLE, and GOOGL report quarterly results.  The uncertainty surrounding these reports has the market on edge, and traders should expect a wild open on Friday as a result.  As Congress haggles over the details of the next stimulus bill, the still found time to hold a virtual flogging of the top tech business accusing them of everything from anticompetitive practices to outright stealing. I’m sure there is much more to come on this subject in the near future.

Even with the uncertainty and very choppy price action, the bulls have maintained majority control over the indexes.  However, with such a big day of data coming our way, anything is possible.  Going into the close today, traders will have to consider carefully the risk and price volatility we could experience Friday at the open.  The potential for a huge gap is high, and the big question yet to be answered is, will it be controlled by the bull or the bear?  Your guess is as good as mine.

Trade Wisely,

Doug