The Daily Breakdown takes a closer look at a few macro components, like GDP and PCE. Solana is trying to gain steam via a breakout.
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What’s Happening?
The second GDP revision for Q2 will be released this morning.
Last month, the initial reading came in at 3%, well above expectations for 2.5%, as trade balances — which hurt Q1 GDP — rebounded last quarter. While Q2 is showing a nice rebound, the first half is shaping up to show disappointing growth. Let’s see what today’s revised numbers reflect.
Tomorrow’s PCE report is also in focus.
Remember, the PCE report is the Fed’s preferred inflation report — and specifically, core PCE. June and July both saw an uptick in inflation and economists are predicting a third straight month of higher inflation, with year-over-year expectations calling for 2.9%.
In-line results aren’t necessarily good as it confirms a third straight month of higher inflation as the Fed is trying to position for a rate cut next month. However, an in-line result keeps the status quo — i.e. a rate cut next month — and that’s likely to keep things calm on Wall Street.
Below expectations and Wall Street bulls will cheer the results, as confidence in rate cuts will likely grow. However, if PCE comes in hot — like 3.0% or higher — and the mood might sour a bit.
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The Setup — Solana
Ethereum has been stealing the spotlight amid its run to record highs, while a lot of attention is on Bitcoin as it sits near a key support area. But what about Solana? It’s working on its fourth straight weekly gain and has climbed in six of the last seven weeks. In that span, it’s up more than 35%. Plus, it just hit a six-month high as it has now rallied more than 13% in the last three days.
Notice the series of higher lows (green arrows) since Solana bottomed in June. Also notice how SOL has seemingly ran out of stream in the $200 to $210 area (blue box). If it can gain momentum over this zone, bulls will hope for more upside potential. Remember, SOL hit $295 in January. However, if the $200 to $210 area acts as resistance, we could see a pullback.
As for other cryptoassets making some waves, Dogecoin, Berachain, Livepeer, and Polkadot are moving this morning. To explore more, check out our Discover page.
What Wall Street’s Watching
Shares of Snowflake are flying higher this morning, up more than 13% in pre-market trading after the company beat on earnings and revenue expectations. What’s more, guidance was enough to impress investors. Its 52-week high comes into play at $229.57, which was hit in July. Will SNOW make new one-year highs? Check out the charts for SNOW.
Alongside a top- and bottom-line beat, Nvidia also issued a solid revenue outlook for next quarter. However, datacenter sales — which was 88% of Nvidia’s revenue — missed expectations, while business from China remains somewhat of a question mark. Management settled some of these concerns on the conference call, but will that be enough for investors moving forward? Shares initially sold off on the results, but are now down just slightly in pre-market trading. Dig into Nvidia’s fundamentals.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.