Stocks in the News

• Advanced Micro Device (AMD) – EPS: $0.69 ($0.68) = 1.47% beat – Revenue: $5.83 billion ($5.72 billion) = 8.88% YoY – News: Reaffirmed guidance Data Center: segment revenue grew 115% YoY to $2.8 billion ($2.75 billion) due to strong AI chip shipments.
• Microsoft (MSFT) – EPS: $2.95 ($2.93) = 0.68% beat; Revenue: $64.73 billion ($64.39 billion) = 15.20% YoY. Fairly boring report overall as a generally inline with expectations and a small miss cloud revenue.
• ASML Holding (ASML) – Adding to tech sentiment today after a Reuters report that the U.S. is now looking to exempt chip-equipment makers in certain countries from export restrictions.
• Nvidia (NVDA) – Morgan Stanley out with a note that the recent selloff has created a good entry point for AI leader also adding to tech sentiment this morning.
• Starbucks (SBUX) – Starbucks up after reporting earnings that were generally in line with expectations. Last quarters report was particularly bad and there were worries of a follow up which did not occur.
• Match Group (MTCH) – The online dating leader reported earnings that were generally in line with expectations but getting a double digit jump after announcing plans to cut its workforce and focus on efficiency.
• Boeing (BA) – names a new CEO which helped soften the blow from a substantial miss on the earnings side of the equation.

Economic News

As we await the FOMC announcement the economic data and news keeps coming in. The top news in the last 24 hours was the Bank of Japan that surprised the markets with a hawkish hike. The BOJ raised its benchmark interest rate which sent the yen up against the dollar. They also announced they planned to cut bond purchases as they attempt to normalize their monetary policy.

In other news there were no surprises out of the Treasury this morning with its Quarterly Refunding Announcement as Janet Yellen’s refunding outline was generally in line with market expectations. As a bonus to the market, Yellen announced that was doubling its buyback program. Economic data released this morning was mixed.

• Miss – ADP Employment +122K versus 147k exp
• Beat – Chicago PMI 45.3 versus 44.8 exp
• Beat – Pending Home Sales 4.8% versus 1.4%

All eyes now turn to the Fed in a few hours.

Geopolitical News

Hamas’ political leader Ismail Haniyeh was assassinated by Israel in Tehran creating speculation about a possible Iranian response. This occurred one day have one of Hezbollah’s top commanders was assassinated by Israel in Beirut.

Worries about an escalation of the conflict in the Middle East have been in the backdrop of the war for months and this latest incident will only stoke those worries. Oil is up notably on the news but still is in a classic short-term downtrend technically.

Next 24 Hours

The big event of the week in most investors eyes is today with the Fed announcement at 2:00 PM EST and the Powell press conference thirty minutes after. It is widely anticipated that the Fed will signal that a September cut is likely and any deviation from this (surprise cut, more hawkish than anticipated) likely would get the market to recalibrate quickly from those preset expectations. We will be live on the Trader’s Lounge through the Powell presser for our pro members analyzing the Fed’s decision and its implications for trading.

We also have earnings results after the bell from META, ARM, and QCOM in an extremely busy day! Have a fantastic Wednesday!

S&P 500 Equal Weight (RSP)

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