Breakfast Bites - A catalyst is needed

Rise and shine everyone.

It would seem that Chair Powell had something to say after all! His comments on the positive progress made on disinflation were received well by the market with the SPX crossing 5500 once again. Even a higher JOLTS report couldn’t deter the market.

But, we still seem to be range-bound if you zoom out and it’s almost like the market is being led higher by just a few stocks. It’s been a challenge to find stock picks and a direction for the rest of the market. We’re coming up on the Jobs Report and next week brings us the start of earnings season - probably the catalyst we need to break the range.

The CME Fed Watch tool still shows the probability of just one cut, with November being the most likely target. US Treasury Yields also remain elevated - we still didn’t get much of a pullback compared to the spike we got on Thursday and Friday.

Tesla, of course, was the winner yesterday after their delivery report came out less bad than expected. The stock was up +10% yesterday and is now up almost another 3.5% in premarket trading.

The focus for the US Markets today will be the Fed minutes, ISM Services, ADP Employment change before we head into the 4th of July holiday and resume with the Jobs Report on Friday.

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