News:
Markets closed mixed on Monday. The Nasdaq fell 0.4%, while the remaining three indexes rose between 0.1% and 0.6%.
There was little conviction from buyers or sellers.
It appears the markets are in a wait-and-see mode as investors anticipate the Fed’s next move.
The FOMC meeting starts today.
Sector Watch
Energy was the leading sector, gaining more than 3%, as the price of crude creeps back towards $100 a barrel.
Photo by Pixabay from Pexels
Utilities came in second as 8 of 11 sectors managed to close the day in positive territory.
Consumer Discretionary, Technology, and Communications all fell but less than 1% each.
Story Stocks
Walmart’s (WMT) stock fell as much as 10% in after-hours trading.
- The company slashed its earnings forecast for the rest of the year
- Reported increased inventory
- And the blames goes to … higher food and fuel prices
- It noted that back-to-school shopping is offering signs of encouragement
Shares of grill maker, Weber (WEBR), fell more than 12% after its earnings call. The takeaway:
- It replaced its chief executive
- Suspended its dividend
- Withdrew financial guidance for the year
Technicals:
As futures sink this morning, I’m watching for key support levels to hold.
The chart below represents the Nasdaq 100.
I’m watching it to hold the gains from the recent breakout…
QQQ Daily Candles – Chart via thinkorswim
If that level fails, I expect the rising support below to hold.
Other indicators remain neutral, which means there’s plenty of slack in the lines. Markets could get extra choppy when there is news to move on.
Timing:
Here are the big news items the market is closely watching the rest of the week…
- Wednesday: FOMC rate hike announcement at 2 pm
- Thursday: Q2 GDP preliminary report drops premarket
- In a blog post last week, the White House downplayed GDP expectations.
Watchlist:
*Low Float
^Open Position
*TBLT is on watch
KOSS is on watch
*^FNKO has support at $22, resistance at $25
FAZE has resistance at $13
*HKD is on watch
SMR has resistance at $13
^CBIO has resistance at $1.80
TH has support at $13
PGY is on watch
SIGA has support at $15
CELH support at $80
NCNA has support at $2
VUZI has support at $7.50
GOSS has support at $11
CNK has support at $19