Hello!
Stocks are opening slightly lower following the rally on Friday and the spike in oil following the attacks in Israel over the weekend. The VIX closed Friday at around 17.50 but got above 20 before the reversal higher in stocks on Friday. A spike above 20 had signaled many reversals from stock selloffs over the Summer but sustained corrections in spring of 2023 and Fall of 2022 saw the VIX near or above 30 before stocks found real buyers.
This week sees a couple of important economic releases. The FOMC minutes on Wednesday. Then the CPI on Thursday which takes on a new significance after the reaction to the hot jobs number last week. Following CPI, the focus quickly turns to the banks reporting Friday morning. The bank stocks have been under pressure with rising rates/yields so investors will be looking for some words and signs on how it’s affecting the large financial institutions. Below are expected moves for the major market etfs, but also some other sectors like bonds, oil and financials in the news:
Expected Moves This Week
- SPY 1.5%
- QQQ 1.9%
- IWM 2.0%
- TLT 2.2%
- USO 3.2%
Here’s a quick run down on the charts and a look at the income from options set-up for the week:
Economic Calendar
Wednesday
- 830am PPI
- 2pm FOMC Minutes
Thursday
- 830am CPI
- 830am Initial Jobless Claims
Friday
- 1030am UoM Consumer Sentiment
Expected Earnings Moves
Tuesday
- PEP PepsiCo, Inc. 3.2%
Thursday
- INFY Infosys Limited 4.7%
- DAL Delta Air Lines, Inc. 4.4%
- WBA Walgreens Boots Alliance, Inc. 6.9%
- DPZ Domino’s Pizza, Inc. 6.0%
Friday
- UNH UnitedHealth Group Incorporated 2.8%
- JPM JPMorgan Chase & Co. 3.2%
- WFC Wells Fargo & Company 4.2%
- BLK BlackRock, Inc. 3.4%
- PGR The Progressive Corporation 4.2%
- C Citigroup Inc. 4.0%
- PNC The PNC Financial Services Group, Inc. 4.3%
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