Major market averages suffered a distribution day yesterday as all of the major indexes sold off more than 1% on higher volume. Such a sell-off is not entirely unexpected given the prior steep v-shaped move off the lows. The sell-off was attributed to Congressional testimony from incoming Fed Chair Jerome Powell indicating that the current trajectory of interest rate increases was likely to remain intact. He suggested the economy was strong enough to withstand the rate hikes, lending to speculation that a fourth rate hike could be possible.
Futures are up about half a percent as markets attempt to bounce after yesterday's higher volume selloff. Markets reacted well to the second estimate of fourth quarter GDP which came in at 2.5% vs. est +2.5%. The first estimate came in at +2.6% last month.
Focus List Notes:
All three Focus List names sold off slightly, more or less matching the -1.23% decline seen in the NASDAQ Composite Index. We do not consider any of these names, AMZM, NFLX, and NVDA to be in optimal buy positions currently.
Market Lab Report - Pre-Market Pulse for Wednesday, February 28, 2018
| Published: | 28 Feb 2018 08:40 ET |
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