OP Wire 5/2 (OP – Lite)

Federal Reserve Chair Jerome Powell’s comments following the central bank’s latest policy meeting provided reassurance, as the Fed maintained its accommodative stance. Despite concerns about persistent inflation, the Fed opted to leave interest rates unchanged, with Powell acknowledging the prolonged nature of the inflation battle. Powell signaled a reluctance to raise interest rates this year, easing fears triggered by recent robust inflation data. He emphasized the importance of data dependency, highlighting the forthcoming U.S. employment report on Friday as a crucial indicator. Analysts at Goldman Sachs noted Powell’s strong opposition to rate hikes, expressing expectations of two rate cuts later in the year, potentially in July and November.

  1. Apple anticipates revenue decline: Apple is poised to release its quarterly results, with analysts forecasting the tech giant’s largest revenue decline in over a year. The expected 5% drop in total revenue for the fiscal second quarter reflects challenges in iPhone sales, particularly in China, amidst heightened competition. Attention will also be on Apple’s plans to integrate generative AI into its iPhones, following discussions with OpenAI and Google’s Alphabet.
  2. Futures climb amid Fed relief: U.S. stock futures saw an uptick following the Fed meeting, buoyed by Powell’s remarks ruling out rate hikes. The positive sentiment follows a challenging month for the Dow Jones Industrial Average, which recorded its worst performance since September 2022. Investors await further economic data, including weekly jobless claims and first-quarter productivity figures, alongside ongoing corporate earnings reports from companies such as Moderna and Peloton.
  3. OECD upgrades global growth forecast: The Organisation for Economic Cooperation and Development (OECD) revised its global growth projections upwards, attributing the improvement largely to robust U.S. economic activity. While the global growth rate for 2024 remains at 3.1%, the OECD highlighted divergent recovery speeds across regions. Notably, the U.S. and China are expected to drive growth, with the U.S. growth forecast raised to 2.6% for the year.
  4. Crude prices rise on weaker dollar: Crude prices experienced an uptick, reversing losses from the past three days, supported by a weaker dollar post-Fed meeting. Powell’s indication of no rate hikes in 2024 contributed to the dollar’s decline, boosting crude prices as a weaker dollar enhances international demand for oil by making it more affordable.

Hey OP. Today will be more whipsaw action so it’s unlikely I will play any alert plays today as premiums will be elevated. Scalps are the only plays on days like today & you should not be greedy. AAPL is expected to miss so if they happen to surprise then you can expect a larger than normal move there. If they miss I plan to buy tomorrow. See you in chat.

If you want to get the plays of the day then signup for Gold, and get a FREE TRIAL

If you want to get the plays of the day then signup for Gold, and get a FREE TRIAL

Responses