The Fed
Stocks finished lower yesterday, by ten bps. Technology was a hit a bit hard with the NASDAQ down by 60 basis points. There is not much that changed based on yesterday’s price action.
The big event happens later today with the FOMC set to decide on rates at 2 PM Eastern. The CME Group is projecting a 97.3% chance of a rate cut tomorrow. There should be no surprises.
The question is, how does Powell position future rate cuts? At this point, the market is not expecting a rate cut in December. So anything that suggests more rate cuts will be viewed as a positive. I think the Fed will use the opportunity the market is giving it and pause here for a bit.
Facebook (FB)
Facebook (NASDAQ:FB) continues to test resistance at $191, and I still think there is a good chance this stock trades lower towards $181 in the days ahead.
Tesla (TSLA)
Tesla Inc (NASDAQ:TSLA) fell some yesterday. Don't be surprised if it continues to fall back to $300. It is fine and healthy.
Apple (APPL
I’d be thrilled if Apple (NASDAQ:AAPL) could fall back to $237 before the company reports tonight and then pops after results. That would be the best-case scenario.
AMD (AMD)
I am completely shocked that Advanced Micro Devices Inc (NASDAQ:AMD) can trade higher in the after-hours following an inline quarter on the top and bottom, and a slight miss on guidance. The way this stock traded higher into the quarter, it should have had a big beat or something more than inline. Shocking. Enjoy it, it won’t last. Support comes around $31.40
