Day Traders Diary

8/3/22

The major averages are set to rise as traders tried to regain their footing following back-to-back losing sessions. The Dow Jones Industrial Average is set to rise 168 points, or 0.54%. The S&P 500 is up 24 points while the Nasdaq is up 80 points.

Those moves came as Wall Street worried that House Speaker Nancy Pelosi's visit to Taiwan could further strain already tense U.S.-China relations. China had spent weeks warning her not to make the trip. Markets fell further after three Federal Reserve presidents hinted that further rate hikes would be necessary to combat high inflation.

Traders also digested mixed remarks from Federal Reserve officials. St. Louis Fed President James Bullard said Tuesday he was confident that the U.S. economy could achieve a "soft landing." Meanwhile, San Francisco Fed President Mary Daly said the central bank's work to tame inflation is "far from done," while Chicago Fed's Charles Evans said there's a chance for a smaller rate hike at the next monetary policy meeting.

Traders are also anticipating another batch of second-quarter earnings. CVS, Regeneron, Under Armour and Moderna will report before the bell Wednesday. Shares of Starbucks gained nearly 2% in premarket trading after the coffee chain posted quarterly earnings Tuesday after the bell. The company beat expectations on earnings and revenue, boosted by U.S. demand for cold drinks even amid high inflation.

In economic data, investors this week are awaiting mortgage demand numbers and PMI data out Wednesday. They will also be watching the July nonfarm payrolls report, due Friday.