With a better than expected markets soared with a big gap up but struggled the rest of the day in a tight range choppy session.  Bond yields relaxed and the dollar pulled back sharply giving upside energy to commodities such as oil, gold, copper, and steel.  Today we kick things off with better-than-expected results from PEP and a few more notable reports as we move toward the big bank reports beginning Friday morning.  We will also have the Jobless claims and PPI numbers to inspire the bulls or bears in this short-term overextended market condition so be prepared for price volatility as we move toward the weekend.

Overnight Asian markets reacted bullishly to the U.S. CPI data with Hong Kong surging 2.60%.  European markets look to extend yesterday’s rally trading bullishly across all indexes.  With pending earnings, jobs, and producer price data U.S. futures point to a bullish open.  Of course, anything is possible after the number are revealed.

Economic Calendar

Earnings Calendar

Notable reports for Thursday include CAG, DAL, FAST, PEP, PGR, & WAFD.

News & Technicals’

PepsiCo, the world’s second-largest soft drink maker, reported strong results for the second quarter of 2023, surpassing analysts’ expectations on both earnings and revenue. The company attributed its performance to its diversified portfolio of snacks and beverages, as well as its investments in innovation and digital capabilities. PepsiCo also raised its guidance for the full year, signaling confidence in its growth prospects. Investors welcomed the news, sending the company’s shares up in premarket trading.

Disney announced on Wednesday that it is extending the contract of its CEO Bob Iger through 2026, giving him more time to oversee the entertainment giant’s recovery from the pandemic. Iger, who returned to the helm in November after stepping down in February, has been leading a major overhaul of the company’s operations, including cutting thousands of jobs and streamlining its divisions. Iger will discuss his plans and vision for Disney in an exclusive interview with CNBC’s David Faber on CNBC’s “Squawk Box” at 8 a.m. ET on Thursday.

Elon Musk has launched a new venture in the field of artificial intelligence. The company, called xAI, aims to “understand the true nature of the universe” by using advanced machine learning and quantum computing. Musk and his team of experts will reveal more details about their ambitious project in a live Twitter Spaces chat on Friday, according to the company’s website.

On Wednesday, stock markets soared as CPI data showed lower-than-expected inflation for both headline and core measures. The S&P 500 gained about 0.7% by the end of the day which spent most of the day chopping in a small rage after the morning gap. Treasury bond yields fell and, the U.S. dollar also weakened in reaction to the data giving energy to commodity sectors. Today we have a few notable earnings to inspire the bulls or bears, along with Jobless Claims and the PPI reports could prove market moving before the bell.  Keep in mind Friday is the official kickoff of 3^rd quarter’s earnings with several big banks set to report.  Expect some volatility as this short-term over extended market reacts to the data.

Trade Wisely,

Doug