Pre-Market Prep: Don’t Let 2 Fed Hikes Pick Your Pocket

Interest Rates, Rising Bankruptcies, and 4 Other Money Matters [Image]( Dow Jones | 33,852 | -0.22% S&P 500 | 4,376 | -0.04% Nasdaq | 13,591 | +0.27% *prices as of 4:00 pm 6/27/22   Thursday, June 29, 2023 What You Need to Know Before the Markets Open   The Big One: Federal Reserve Chair Jerome Powell won’t commit… at least not yet. The U.S. central bank’s big kahuna told the crowd at the redundantly titled panel, the European Central Bank Forum on Central Banking that they haven’t taken consecutive rate hikes “[off the table]( Well, for now at least… Equities sagged on the hawkish vibes JPow has given off. You see, when the Fed opted to skip an interest-rate increase last meeting, but said more rate hikes were to come, many on Wall Street took that as a sign to expect hikes every other meeting. But Powell warned, “Not so fast!” The Fed still sees danger from doing too little. Economic growth, the labor market, and inflation are still above central bank expectations. Normally, most of these would be good news! But not during a rate hike cycle. Well, our next peek under America’s economic hood is less than 90 minutes away with gross domestic product and weekly initial jobless claims. You can bet your portfolio those will impact the market’s mood. The question is, for better or for worse… Regardless, remember, cooler heads must prevail and we can’t let the Fed - and the threat of two consecutive rate hikes - pick our pockets. So, read on for the 5 other money matters to know for today…   Follow the Money With Garrett {NAME}   Dwindling momentum… a squeeze… This pattern isn't new. We've seen it before during the market slumps in April, August, and December. So, there’s been green, that’s true. But don't get too comfortable. A sudden reversal could be on the horizon. Energy stocks have felt pressure. And if negative momentum is set to strike, it could happen soon… maybe even today. Traders have been rallying around the top seven names in the market (you know who they are). But underlying fragility persists, echoed by rising bankruptcies in the broader economy.   Across Money Morning   An Opportunity for Profits in “the Most Overbought Trade”… Yesterday's 1% drop notwithstanding, Nvidia's (NVDA) stock chart looks like a 45-degree angle this year. The thing is, most of Nvidia's monster bull run in 2023 is fueled by sentiment, not business fundamentals… Insiders are skeptical of further upside. Now, with reports leaking the U.S. may implement stricter export controls on AI-enabling chips, questions are starting to be asked about Nvidia's long-term prospects. The Chinese market - the target of these bans - is massively important to the firm's bottom line. Chris Johnson isn't so eager to write Nvidia's obituary, though. He sees more pain ahead, but [he's ready to buy at this level](... [This Could Be the Answer to a Frustratingly Sideways Market]( When the market is teetering on an edge - stuck between bull and bear - it can be a challenge for even the most veteran of traders. The Dow is up one day… down the next. In stretches like these, every potential advantage is vital. Well, Tom Gentile is here to help. He once designed a trading system that was scooped up by a major Wall Street player. So he knows innovation when he sees it. And he’s pretty fired up right now to demonstrate a trading software he uncovered - one that’s never existed before. [He’s revealing details right here](. Names to Know... It feels like the curtain wrapped on first-quarter earnings only yesterday. But the new earnings season is already upon us. And our “name to know” for this evening is sneaker staple Nike (NKE). Shares are expected to see a move of +/-5.6%, as investors will be digging for any signs of consumer weakness… or surprising strength. That expected move would take us to roughly $119 to the upside or $106 to the downside. Retail has been a rocky road for gains in recent months. [But there are three names to know…]( What to Do with Your Quality AI Stocks… Tom Gentile recently gave us his “AI Power Stocks” list – the artificial intelligence players you want to own. Now, you could buy these stocks and hold them for 12 or 18 months and you’d do perfectly well. But… if you trade them using the technique Tom’s using on his own AI portfolio, you could turn “good” gains or “beating the market” into an absolute windfall. [It’s easier than you might think…](   Chart of the Day: An 87.5% Chance for Gains?   An 87.5% chance for gains? That’s what’s on deck for Friday. You see, tomorrow morning at 8:30 AM EST, monthly Personal Consumption Expenditures (PCE) will be released. This is another chance for investors to get a pulse of the consumer… particularly as the Fed is in rate-hike mode. Expectations are for a 0.3% month-over-month increase and a 4.6% year-over-year increase. But don’t fret. The good news is the Invesco QQQ ETF (QQQ) - the proxy for the Nasdaq 100 - has risen on PCE seven of the last eight releases. That’s – you guessed it – an 87.5% chance for gains.   Get More Money Morning Our experts offer special actionable investing and trading research to their subscribers every week [Subscribe Now]( [Image]( You are receiving this e-mail at {EMAIL}, as part of your subscription to Money Morning. To remove your email from this list: [unsubscribe here](. To cancel, or for any other questions or requests, please contact our Customer Service team: Online: [Customer Service Form]( Phone: 888-384-8339 (North America) 443-353-4519 (International) Mail: Money Morning | Attn: Member Services | 1125 N Charles Street | Baltimore, MD 21201 Fax: 410-622-3050 Our Customer Service team is available Monday ­ Friday between 9:00 AM and 5:00 PM ET. © 2023 Money Morning LIVE. 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