Wake Up Wall Street (SPY) (QQQ): Target missed, stocks stall, but memes stand tall

Here is what you need to know on Wednesday, August 17:

The equity market stalled on Tuesday as the riskier Nasdaq closed down, while the S&P 500 was moderately higher. That did not stop meme stocks from posting some eye-watering gains, however, as retail traders went all in on this latest rally. Vinco Ventures (BBIG), GameStop (GME), Bed Bath & Beyond (BBBY) and FuboTV (FUBO) all posted huge gains as volumes also were noticeably higher in retail names. Whether this marks the top of the recent rally remains to be seen, but retail does have a poor track record of buying the top.

Already sentiment indicators have moved into overbought levels, and CTA and hedge fund accounts continue to chase the latest squeeze. It comes just in time for a pause then. What will be the most closely watched today is the Fed minutes. The market has been backing the dovish theory, but some hawkish minutes may cause a rethink. The market is probably looking for a reason to pause after a big rally across equities. Tesla (TSLA) for example is some 50% higher from the June lows. Retail sales just out are a bit mixed. The core number is solid, but the headline is a touch behind. This will be ignored for the most part once the Fed minutes come out.

The dollar is continuing recent gains and should see a further bid if the Fed is all hawkish as we expect. Currently, it sits at 106.87 in the dollar index. Gold is $1,768, and Bitcoin is at $23,600. Oil remains lower at $86.40.

See forex today

European markets are lower: Eurostoxx -1%, FTSE -0.6%, and Dax -0.85.

US futures are lower: S&P -0.8%, Dow -0.65 and Nasdaq -1%.

Wall Street top news (SPY) (QQQ)

China to participate in Russia’s military drills.

OPEC sees a supply squeeze ahead. 

Target (TGT) misses on earnings, shares lower.

Manchester United (MANU) up on Elon Musk’s tweet.

Cassava Sciences (SAVA) up on insider purchases.

BBIG stock up on momentum and meme stock plays, see also GME, BBBY, etc.

Tesla (TSLA) bearish double top formation in place.

Lowe’s (LOW) beats on EPS and revenue behind but issues strong guidance.

TJX beats on EPS, but revenue behind. Cuts forecast.

Bed Bath & Beyond (BBBY): To infinity and beyond as BBBY stock is now up 485% in August.

Southwest Gas (SWX): Carl Icahn increases stake.

Sanofi (SNY) halts the development of breast cancer treatment.

Upgrades and downgrades

Source: WSJ.com

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