## MARKET MOOD: RISK-OFF
Overnight, global markets showed signs of caution as concerns over U.S.-Iran tensions escalated, leading to a spike in oil prices. Mixed economic signals from the U.S. job market and disappointing corporate earnings added to the uncertainty.
## TOP 5 HEADLINES
1. **US Jobless Claims Decline** → Impact: A drop in jobless claims signals a potentially stable labor market, which may influence Fed policy.
2. **EBay Strikes $1.2 Billion Deal to Buy Depop from Etsy** → Impact: The acquisition is expected to enhance eBay's presence in the fashion segment, boosting shares of both companies.
3. **Deere's Stock Jumps Toward Another Record** → Impact: Strong demand in the construction sector lifts Deere's outlook, with shares climbing in pre-market trading.
4. **Southern Co Forecasts Annual Profit Below Estimates** → Impact: A cautious profit forecast has led to a negative sentiment around Southern Co's stock.
5. **Walmart's Cautious Outlook Overshadows Quarterly Results** → Impact: Despite solid sales, a muted profit forecast caused Walmart's shares to fall significantly.
## PRE-MARKET MOVERS
### Longs (Bullish Catalysts)
**$DE** - Strong demand in construction boosts outlook.
**$EBAY** - Acquisition of Depop enhances market position.
**$DASH** - Anticipated growth in delivery demand.
**$HIMS** - Strong revenue growth signals potential for rebound.
### Shorts (Bearish Catalysts)
**$WMT** - Cautious profit forecast leads to stock decline.
**$SO** - Annual profit forecast below expectations weighs on shares.
**$CVNA** - Disappointing earnings results cause significant sell-off.
**$NKE** - Slowing sales growth raises concerns about future performance.
## INDEX BIAS
**SPY:** BEARISH - Concerns over corporate earnings and geopolitical tensions are weighing on investor sentiment.
**QQQ:** BEARISH - Tech stocks are facing pressure amidst uncertain economic outlook and rising interest rates.
**IWM:** NEUTRAL - Small caps remain mixed as they react to broader market trends without clear direction.
## SECTORS
**Favor:** Consumer Discretionary - E-commerce and delivery sectors are seeing positive momentum from acquisitions and demand.
**Avoid:** Utilities - Regulatory concerns and disappointing profit forecasts are impacting sentiment.
## CATALYST WATCH
Events today that could move markets:
- **8:30 AM ET:** U.S. Jobless Claims report.
- **10:00 AM ET:** U.S. Existing Home Sales data.
## BOTTOM LINE
**Today's Play:** SELECTIVE
With geopolitical tensions rising and mixed economic data, traders should focus on selective opportunities in e-commerce and construction while remaining cautious of sectors facing headwinds. The biggest risks lie in corporate earnings misses and ongoing geopolitical developments.
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