Although the bears came out slightly on top by the end of Tuesday trading, it was a choppy hurry-up and wait session with pending Durable Goods numbers just around the corner.  With some potential market-moving earnings reports and analyst consensus that Durable Goods and Pending Home Sales could decline, it could be a volatile morning session.  Index charts are at or near critical support levels, so much is at stake as the bulls and bears battle for control.   As you plan forward, remember that we have a GDP number before the bell Thursday.  Buckle up anything is possible!

Asian markets closed mixed but mostly lower, with the tech-heavy HSI leading the selling down 1.20%.  European markets trade flat to slightly lower this morning as global growth, and potential Fed rate action raises concerns.  Finally, with a substantial morning of potentially market-moving earnings and economic reports, U.S. futures point to a slightly lower open, but in truth, anything is possible at the open as the details are revealed.  So, prepare for some price volatility and another waiting game in the afternoon for the GDP number.

Economic Calendar

Earnings Calendar

For the Wednesday earnings calendar, we have less than 30 companies listed, most of which have been confirmed.  Notable reports include ADSK, BOX, CRM, EAT, DY, GES, IIVI, NTAP, NVDA, WOOF, SNOW, SPLK, VSCO, & WSM.

News and Technicals’

Packable, the parent company of top-ranking Amazon seller Pharmapacks, is laying off employees and ceasing operations, according to documents viewed by CNBC.  The health and beauty product retailer was the largest seller on Amazon’s third-party marketplace.  Packable is liquidating after a failed effort to go public through a special purpose acquisition company.  Nordstrom slashed its financial forecast for the entire year as the department store chain faced a glut of inventory.  The retailer’s lowered forecast came even as it reported fiscal second-quarter earnings and sales ahead of analysts’ estimates.  Xpeng’s Hong Kong-listed shares plunged more than 12% on Wednesday after the Chinese electric vehicle maker reported a wider-than-expected loss for the second quarter.  Xpeng said it expects to deliver between 29,000 and 31,000 electric vehicles in the third quarter, representing a year-over-year increase of around 13% to 20.8%.  Xpeng said it is confident that the launch of the G9 SUV in September and two new models in 2023 will help it enter a “growth cycle.”  It’s been six months since Russia began its invasion of Ukraine, an act that shocked the world and one that was almost universally condemned.  Russia was widely perceived to have been preparing to claim a quick victory in Ukraine, but hopes of swiftly overthrowing Volodymyr Zelenskyy’s pro-Western government soon evaporated.  Six months on, the invasion is now facing a long, grinding “war of attrition” that causes widespread death, destruction, and displacement in Ukraine — and is costly for Russia too.  Treasury yields ticked slightly lower in early Wednesday trading, with the 12-month at 3.24%, the 2-year at 3.29%, the 5-year at 3.16%, the 10-year at 3.04%, and the 30-year at 3.25%.

Tuesday proved to be a choppy hurry-up and wait for the Durable Goods numbers coming before the bell on Wednesday.  Although the bears won the day with all but IWM slightly lower, the volume was very light, with the VIX hovering just above the 24 handles.  Today could be an exciting day with the consensus suggesting a weakening Durable Goods number with Pending Home Sales expectations likely declining, adding to the concerns of a slowing economy.  However, we also have several potential market-moving earnings reports that will keep the bulls and bears locked in a battle near index price support levels.  Expect price volatility through the morning session but don’t be surprised if the afternoon becomes light and choppy as we wait for NVDA earnings and the pending GDP report Thursday before the bell.

Trade Wisley,

Doug