Good Morning -
This morning investors received several key economic data points to further consider ahead of non-farm payrolls tomorrow:
Private ADP Jobs data rising by 99,000, below consensus forecasts of 140,000
Initial Jobless claims of 227,000, better than consensus forecast of 229,000
Labor costs come in below estimates, implying that wage inflation is likely kept in check.
The pre-market reaction to this data so far has been highly volatile with both the S&P 500 (ES) and Nasdaq-100 (NQ) revisiting yesterday’s pre-market lows and attempting to defend that area as of this note. The positive side is that both the Dow and the Russell 2000 are both still flat/mildly positive, implying that there is some breadth support heading into today’s session. Tech has been underperforming the S&P 500 (SPX) for some time now, and any recovery in tech will be a strong boost to SPX.
If ES can find several smaller-timeframe closes above above 5520 and NQ above 18900 before the opening bell, it’s possible that in the regular trading session start at 930am sees a bit of relief. The first reclaim that may start a recovery sequence is 5530 ES and 18950 NQ. We’re currently at 5525 and 18900 NQ as of now.
Later today we have Broadcom (AVGO) earnings after the bell. AVGO is the top weighting inside the SOXX Semiconductor ETF and a large component in QQQ ETF. A beat & raise from AVGO can lift tech sentiment. Ahead of the earnings outcome, Members can view whether AVGO is trading at our Bear, Base, or Bull case from our DCF conclusion study from our Daily plans.
Have a great day folks!
DCF Tables and stock projections for the most heavily weighted names within SPY, QQQ, and DIA ETF are located in the Daily Plans.
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