With disappointing economic data and Fed speakers remaining hawkish on their battle with inflation but in a late-day surge investors whipsawed the indexes with the Dow reversing more than 350 points from low to high in the last 30 minutes of the day!  The SPY broke out above resistance to joining the QQQ while the DIA and IWM remain range bound after the 2-day rally.  Only a handful of the tech giants provide the majority of the rally.  Today with a light earnings calendar the focus will likely be on the economic calendar dominated by Fed speakers including Jerome Powell.

Though Japanese stocks reached their highest level since 1990 Asian markets closed mixed with Hong Kong down 1.40%.  European markets trade green across the board this morning as G-7 leaders commit to more Russian sanctions.  U.S. futures suggest a modest open on Friday with Jerome Powell’s comments following committee member comments likely to dominate today’s market sentiment.

Economic Calendar

Earnings Calendar

We have a very light day on the earnings calendar.  Notable reports for Friday include DE & FL.

News & Technicals’

Leaders in the G-7 have committed to more Russian sanctions.  “We will starve Russia of G-7 technology, industrial equipment, and services that support its war machine,” the G-7 said in a statement released late Friday. The G-7 added, “We will continue our joint effort to support Ukraine’s repair of its critical infrastructure, recovery, and reconstruction.” The United Kingdom separately imposed further sanctions on Russia’s diamonds, an industry worth $4 billion in exports in 2021.

The Walt Disney Co. has scrapped its plans to build a new campus in Lake Nona, Florida, and relocate 2,000 employees from California to work in digital technology, finance, and product development. The company cited “changing business conditions” as the reason for the decision. The move comes amid a bitter feud between Disney and Florida Gov. Ron DeSantis over a state law that bans classroom lessons on sexual orientation and gender identity in early grades. Disney filed a First Amendment lawsuit against DeSantis and other officials last month. The new campus was expected to cost $1 billion and create 13,000 jobs over the next ten years.

Investors whipsawed the indexes on Thursday, despite the uncertainty over Fed rate comments and the debt-limit talks in Washington. Hotter-than-expected jobless claims and a very weak economic outlook in the Philly Fed report started the day sharply lower but surged sharply higher in the last 30 minutes of the day with the Dow moving more than 350 points from low to high. The good news is that the late-day surge finally broke the resistance in the SPY with the tech giants doing most of the lifting.  However, the DIA and IWM remain range bound although looking improved with the 2-day rally. We have a light day on the earnings calendar and the economic calendar will be dominated by Fed speakers with Jerrome Powell speaking at 11:00 AM Eastern.

Trade Wisely,

Doug