Markets Take a Breather – All Eyes on Fed, Data, and Earnings
U.S. stock futures are flat to slightly lower this morning, hinting at a pause after back-to-back record highs in global equities.
- Dow futures: flat
- S&P 500 futures: -5 pts (-0.1%)
- Nasdaq 100 futures: -21 pts (-0.1%)
Yesterday, the S&P 500 and Nasdaq locked in new all-time closes, while the Dow surged over 1%. The rally is being powered by expectations the Fed will cut rates in September as muted inflation meets a cooling labor market.
Treasury Secretary Scott Bessent fueled the dovish fire, suggesting a half-point cut could be justified given sharp downward jobs revisions. ING counters that markets still only price a 25 bps move—unless Jackson Hole or the August jobs report brings a major surprise.
Cisco Earnings – AI Orders Explode
Cisco beat Q4 revenue estimates ($14.67B vs $14.62B) and issued a stronger-than-expected Q1 outlook, despite modest tariff impacts on copper, steel, and aluminum. AI infrastructure orders hit $800M in Q4 alone, pushing the FY total past $2B—double the target.
CEO Chuck Robbins highlighted strength in cybersecurity, firewalls, and momentum from the $28B Splunk acquisition. Q1 guidance: $14.65B–$14.85B revenue vs $14.62B expected.
Support: $47.75 – $48.00
Resistance: $52.00 – $53.25
Economic Data – PPI & Jobless Claims
- PPI (July) – could show slight acceleration if tariffs filter in, but services costs remain tame.
- Weekly Jobless Claims – expected near 229K vs 226K prior.
Labor softness remains the Fed’s #1 reason to resume cuts.
Other Headlines
- DeepSeek AI Delay – Huawei chip issues force reliance on Nvidia for training; Ascend chips to be used only for inference.
- Bitcoin – fresh record high, boosted by corporate treasury adoption and rate cut bets. Strategy now holds >628K BTC.
- GE Appliances – $3B reshoring push from China/Mexico to U.S., adding 1,000+ jobs across KY, GA, AL, TN, and SC.
OP Game Plan
Today’s AC&I Live Trading kicks off at the open — perfect timing with big names like Applied Materials (AMAT) reporting after the bell. If you’re not set up for live access, email steve@optionsplayers.com so you’re not trading blind.
Responses