Podcast
Next Day Prep #95: Fading Rate Cut Hopes Spike Yields – Thursday 8/21/2025
Key takeaways
- Be prepared for either scenario post-Fed Chair Powell’s speech, focusing on strong and potentially breakout stocks like CRM and GWW .
Next Day Prep: Fading Rate Cut Hopes Spike Yields
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome to Next Day Prep – What We Are Watching Tomorrow. The S&P 500 is now down five straight sessions, reflecting a heavier market mood.
Overnight Headlines
- Fed Officials: Hawkish statements from Kansas City Fed President Schmid and Cleveland’s President Hammack pushed rate cut hopes back.
- Philly Fed Survey: Showed a miss with rising inflation pressures from increased prices paid and received.
- Jobless Claims: Unexpectedly rose, indicating potential signs of stagflation.
Economic Announcements
Rate cut expectations for September have dropped with Treasury yields like the 10-year creeping back up.
Earnings Highlights
- Walmart (WMT): First earnings miss since 2022 due to increasing costs from tariffs, impacting the consumer sector.
- Coty: Experienced a significant decline after reporting unexpected losses and poor guidance.
Top Movers
Energy and Materials saw gains while Consumer Staples suffered, notably due to Walmart’s miss.
Quick Trade Ideas
- Intuitive Surgical (ISRG): Strong collaboration news amid market weakness suggests continued strength.
- Analog Devices (ADI): Shows relative strength in the semiconductor space despite overall pressures.