Here is a quick recap of Markets for the Week of August 16th, 2024 and what we are watching this week

S&P 500 $SPY +3.9%

Nasdaq Composite $NDX +5.3%

Russell 2000 $IWM +2.9%

Dow Jones Industrial $DJI +2.9%

The volatile action thus far in August has been precipitated by concerns about a weakening economic environment and labor market which can affect earnings growth.

Last week's release of economic data had the market feeling good which resulted in strong buying activity.

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Key points from last week:

• Producer Price Index- showed disinflation in total and core PPI which contributed to optimism around the Fed's rate cut path 🟢

• Consumer Price Index- was in-line with expectations also supporting the market's belief that the Fed will cut rates by 25 basis points in September even though CPI inflation is comfortably above the Fed's 2% goal; which is oriented around PCE price inflation that is currently at 2.5% 🟢

• Retail Sales Report- came in much better than expected driven by increased demand on top of price increases 🟢

• Other corporate news- Starbucks (SBUX) reported CEO Laxman Narasimhan will step down and be replaced by Chipotle (CMG) CEO Brian Niccol. Bloomberg reported that the Department of Justice DoJ will be looking at breaking up Alphabet (GOOG) following a court ruling that Alphabet violated search-related antitrust laws.

• Earnings - Solid earnings results and commentary about the consumer from Walmart (WMT) +8.09% and Cisco's (CSCO) +8.78% solid fiscal Q4 operating performance. Home Depot (HD) +3.9% closed higher despite reporting below-consensus guidance.

$SPY: S&P 500 has made a strong bounce from it’s selloff just 2 weeks ago +8.5% back to test key resistance at 550-560.

With not much on the economic calendar this week all attention will be on Fed Chairman Powell speech at the Jackson Hole Economic Symposium.

Over 562 look for markets to retest the July highs and work its way to 570. Under 548 look for markets to pullback and fill some gaps it left.

🚨Watchlist 👨‍🏫

 $PANW: Palo Alto Networks reports earnings on Monday and investors are eager to see if the CrowdStrike saga is having ripple effects across the cybersecurity landscape.

Analyst are looking for $1.41 earnings per share on revenue of $2.162 billion.

Reclaim of $350 would be bullish and we can look for a move towards $370-$380. Under $320 has room to pull back to $310, $300 and $290.

❄$SNOW: Snowflake will also give us a cybersecurity sector check when it reports earnings on Wednesday after the close.

Wall Street analysts expect earnings of $0.15 per share a y/y decline of 31.8%. Revenues are expected to be $848.15 million, up 25.8% from the year-ago quarter.

SNOW is in a steep falling wedge, down 45% from its February highs. Bulls need to reclaim $150 for a move to $160, $175 and $190. Under $110 has room down to $100 and $90.

🎯 $TGT: Target will report earnings on Wednesday morning. Slowing consumer discretionary spending, particularly in June and July, is weighing on retail Q2 results and 2024 second half outlooks.

Wall Street analysts expect $2.17 per share a y/y increase of 20.6%. Revenues are expected to be $25.23 billion, up 1.9% from the year-ago quarter.

Bulls need to reclaim $150-$160 resistance for anything exciting to happen. Under $130 it has room to pull back to $110-$100.

If you are interested in seeing how we are looking to trade these names reply back or comment Swing Trades below for more information.

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