US stock futures are relatively flat this Tuesday, suggesting a potential pullback after Monday’s gains. Investors are holding steady ahead of crucial economic data, including an inflation report and possible Federal Reserve interest rate cuts. As of early trading, Dow and S&P 500 futures remained unchanged, while Nasdaq 100 futures shed 33 points, or 0.2%.
The prior session saw a rebound, with traders buying into stocks after last week’s sell-off, which was driven by a weaker-than-expected August jobs report and sluggish manufacturing data. Markets are now focused on what the upcoming inflation report and Fed decisions could mean for monetary policy. The central bank is expected to cut borrowing costs at its September 17-18 meeting, but the size of the cut—either 25 or 50 basis points—remains uncertain. The release of the Consumer Price Index (CPI) on Wednesday could provide more clarity.
Notable Movers:
- Boeing (BA): Shares climbed after Boeing reached a tentative labor deal with its largest union, helping to offset the negative sentiment surrounding the company.
- Palantir (PLTR) and Dell (DELL): Both stocks surged on news that they will join the S&P 500 index later this month.
Apple Unveils AI-Powered iPhone 16, Shares Remain Unchanged
Apple (AAPL) revealed its highly anticipated iPhone 16, featuring enhanced artificial intelligence capabilities such as improved Siri functionality and smart camera tools aimed at professional video editing. While these features were expected, analysts are cautious about the gradual rollout, especially with stiff competition from Samsung and Huawei. Despite the new product launch, Apple shares remained mostly unchanged in after-hours trading. The iPhone 16 is set for pre-order this Friday and will hit stores on September 20.
Oracle Tops Earnings Expectations, Partners with Amazon Web Services
Oracle (ORCL) reported strong fiscal first-quarter results, surpassing earnings estimates with $1.39 per share on $13.3 billion in revenue. This growth was fueled by high demand for its cloud services. Oracle also announced a partnership with Amazon Web Services (AWS), allowing customers to access its database services on AWS. Shares jumped in after-hours trading as the company projects further revenue growth for the next quarter, topping analyst expectations.
Chinese Export Growth Surprises, But Imports Lag
Chinese exports rose 8.7% in August, surpassing forecasts and marking the fastest growth rate since March 2023. However, imports grew by only 0.5%, missing estimates and signaling weak domestic demand in the world’s second-largest economy. Analysts suggest that companies may be accelerating export orders ahead of possible foreign tariffs, which could maintain export strength in the short term.
Oil Prices Dip Despite Gulf of Mexico Storm
Oil prices edged lower as concerns about weak demand in China outweighed the potential supply disruptions from Tropical Storm Francine, which is threatening U.S. oil production in the Gulf of Mexico. Brent crude futures fell 0.4% to $71.53 per barrel, and West Texas Intermediate (WTI) dipped to $67.61 per barrel. While oil companies like ExxonMobil and Chevron are preparing for possible storm-related halts in production, weak economic data from China continues to dampen sentiment.
OptionsPlayers Chat Play Recap
Great job, OP family, on yesterday’s plays! We crushed it with QQQ and AAPL puts, locking in solid gains. As expected, Apple dropped more than $4 following its event, a consistent trend we’ve noticed on past announcement days. Today is likely to be a chop day, so I’m keeping a close eye on the BABA, NUGT, and UNG long plays we’ve been discussing. Let’s stay patient and wait for the right setups. I received another two emails from your members that hit the $400k gain mark. My goal is for all of you to get there so be sure to read the welcome email and follow the instructions including the part where I ask for you to reply with your goals and previous experiences in trading! See you in the chat!
Key Takeaways for OptionsPlayers Members:
- Watch for Economic Data: Wednesday’s CPI report could drive market action and set the tone for the Federal Reserve’s next move. Be cautious, as these events often increase volatility.
- Stay Focused on Sector Opportunities: As oil prices react to global demand and potential supply disruptions, energy stocks like ExxonMobil and Chevron may be in play. Keep an eye on market sentiment and sector rotations.
- Monitor Apple Post-Event: With AAPL consistently dipping after product launches, further opportunities for puts or bearish plays could arise. Meanwhile, keep a watch on the broader tech sector as it reacts to Fed and inflation news.
Stay sharp, and keep an eye on the levels and setups we’ve been discussing. Happy trading!
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