The Week Ahead
New developments in the middle east, J Powell set to talk, earnings szn kicks off, SPY pivots + Stocks to watch... LFG!
Good Morning Stackers,
The stock market closed the week in typical risk-off fashion on Friday. Investors likely were bracing for the impact of this weekend’s events that have since unfolded between Israel and Iran.
Over the weekend, Iran launched drones and missiles toward Israel after vowing retaliation for a deadly strike on its consulate in the Syrian capital Damascus.
The actions that have unfolded over the weekend in the Middle East have raised concerns that the expanded regional conflict could result in additional countries becoming involved.
Bitcoin, which has spent much of this year leading the general equity rally higher was not immune to the risk-off move seen in equities. As Iran launched their attack, cryptocurrency markets saw a risk-off move over the weekend as they remain open 24/7.
Sunday morning, news broken by Reuters likely became a temporary relief that the U.S. would not involve itself in retaliatory strikes against Iran.
Stock futures have since rebounded across the S&P 500, Dow Jones Industrials and NASDAQ between ¼ to ⅓ of a percent. The market seems to be brushing it off for now, but should any new developments occur in the Middle-east and I would expect fear-induced headline driven trade to ramp up in volatility and frequency.
The Fear-Greed Index has also cooled off to its lowest reading in nearly 6 months.
Economic Calendar
Monday, April 15
Empire State manufacturing survey
U.S. retail sales
Business inventories
Home builder confidence index
Tuesday, April 16
Housing starts
Building permits
Fed Chair Jerome Powell speaks 1:15 pm EST
Wednesday, April 17
Fed Beige Book
Thursday, April 18
Initial jobless claims
Philadelphia Fed manufacturing survey
Existing home sales
U.S. leading economic indicators
Friday, April 19
No scheduled economic readings
Earnings Season Begins
Earnings will be in full swing the week ahead. This week’s most anticipated earnings are included in the graphic below via eWhispers.
NFLX shows interesting positioning at the 650 strike heading into earnings
and more