Market Prep: Unemployment, JETS and MU earnings

$MU, $JETS, $XLY - What Moved the Market

Hi traders,

Market tested our lower support from yesterday; we dipped slightly below to trap more short traders and bounced as expected. This was an ideal gap-fill play. The question remains whether the market holds the levels after more data this week and the BOJ rate decision. Please read our thoughts here. We’re holding above 50-DMA on SPX but NASDAQ/ QQQ looks much weaker and is still below 50DMA.

Yesterday’s labor data showed a higher unemployment rate alongside softer wage growth, reinforcing the view that the job market is cooling without breaking. Slowing wages reduce inflation pressure from the services side, which is exactly what the Fed wants to see.

If CPI comes in lower or in line, this combination strengthens the case for further easing, as inflation would be falling while employment remains intact. If CPI surprises higher, the softer wage trend still helps limit the upside risk, but it would likely delay the pace of easing rather than fully reverse it.

MU Earnings