Morning Dose #42: Subdued Markets Await Trading Trigger – Wednesday 5/28/2025
Key takeaways
- Remain cautiously bullish focusing on tech and consumer discretionary sectors. Manage risk carefully, especially around support and resistance levels. Watch out for potential shifts in volatility around the FOMC Minutes and bond auction.
Morning Dose: Subdued Markets Await Trading Trigger
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Market Briefing: May 28th
Intro & Market Mood
After a strong rally yesterday, the market seems subdued today as S&P 500 futures hover near fair value, taking a breather following positive tariff delay news and strong consumer confidence figures.
Overnight Headlines
- Asian and European markets had a cautious tone, with slight declines.
- Japan’s long-term yields rose after a bond auction, possibly committing to chip purchases in a U.S. trade deal.
Economic Announcements
In the U.S., weekly MBA Mortgage Index fell 1.2%, continuing a trend of softness. Treasuries saw upward pressure with the 10-year yield at 4.45%. Germany and France reported mixed economic data.
Earnings Highlights
- Abercrombie & Fitch (ANF) beat Q1 expectations but issued cautious guidance.
- Box (B.O.X.) outperformed and raised guidance for Q2 and fiscal ’26.
- Okta (O.K.T.A.) saw a sell-off despite beating and raising guidance due to market expectations.
Top Movers
Pre-market movers include Brooge Holdings (BROG) up nearly 50%, Vail Resorts (MTN) up 11%, and InflaRx (IFRX) down significantly.
Quick Trade Ideas
Watch tech and consumer discretionary stocks for breakouts with strong volume. Consider Tesla (TSLA) for continuations and BWX Technologies (BWXT) as an anticipation play.