The quarter is winding down and with it, a bit of steam for the stock market as some say investors are finally facing up to fading hopes for Fed rate cuts in 2023. The S&P 500 SPX and Nasdaq Composite COMP have each logged five losing sessions out of the last six.
But they urge investors to “embrace the uncertainty,” in our call of the day, and explain how to manage both sides of how stocks might proceed this summer. In short, yet another battle of the bears and the bulls may be ready to play out this summer. Naturally, not all investors are ready to choose sides, so here’s the advice from Evercore, who offer one options strategy known as the strangle.
“With optionality remaining near its cheapest levels since the pandemic, we recommend buying the SPX Aug 4,450C/4,200P “strangle” to capitalize on the idea that uncertainty should be embraced this summer, because anything can happen,” said Emanuel and the team.Read: The stock market is headed for a big first-half gain. What history says that means for the rest of 2023.
The buzz Snowflake shares SNOW are up nearly 3% after the software maker announced AI-related partnerships with Nvidia and Microsoft. Plus: Does Nike have too many sneakers? Thursday’s results could tell us whether shoes will get cheaper.Durable goods orders are due at 8:30 a.m., followed by the S&P Case-Shiller home price index at 9 a.m., then new home sales and consider confidence at 10 a.m.