Jam Packed Monday

Stop Gap Funding

Over the weekend, Congress finally came together in an overwhelming 89-9 vote to pass the stopgap bill keeping the government from shutting down. This has occurred 15 times in United States History, and with so much on the line, Congress was willing to make this number 16 mainly due to disagreements over funding for Ukraine. Now that that is all over, investors can rest easy and re-focus on navigating through this period of high inflation. 

J. Powell

Last Friday, PCE data was released, and the CORE data was in line with expectations YoY, but non-CORE PCE was higher than the previous months’ data. While the market initially reacted positively to the data, it was short-lived, and 2 out of 3 major indexes [SPY, QQQ, DIA] closed in negative territory. Federal Chair Jerome Powell has repeatedly stated that PCE data was more important to the Fed than CPI data. Given that, we will hear from Powell Monday morning (10/1/2023) at 11:00 AM EST. There’s a good possibility he discusses PCE data and the passing of the STOP GAP Funding bill. High volatility is expected during and after Powell speaks, so for our traders, it’s best to wait until his speech is over or just stay cash for the day. 

Tesla Q3 Deliveries 

While Tesla's CEO Elon Musk is off fighting border control, the company announced its Q3 delivery report. The current expectations are:

456,722 total deliveries, 439,362 Model 3/Y, 17,721 Model S/X, 15 Semi Truck, and 456,616 in total production. TSLA was trading near the lows of the month, but the daily candlestick pattern shows potential for a major rebound, and this could be the catalyst to do it. 

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