The debate, unfortunately, offered little substance last night. President Trump again attempted to undermine confidence in the election results, a remarkable position for a sitting president. I mention this, because the possibility that we do not have a clear winner on election night is something we should all be reasonably considering as one possible outcome. The drop last night began toward the end of the debate when they talked about election security. My take is that the market had hoped for a better reaction from the president, but in all likelihood we just got a glimpse of what election night, and the days that follow, will possibly look like in a close race.

The S&P Futures dropped 67 points from where it was trading at 10:15pm ET last night to a low of 3291.50 at around 2 am EST. The market has now bounced almost 40 points from that low, and sits just in the red with about 30 minutes until the open.

We just got a strong ADP number at 8:15am, with the private economy adding 749K jobs. The expectation was 600K jobs. Non-farm payrolls is Friday and the expectation is for around 800K jobs added.

Stocks on the radar for earnings tomorrow:
Bed Bath & Beyond (BBBY) - earnings Thursday before the open.
Pepsi (PEP) - earnings Thursday before the open.
Conagra (CAG) - earnings Thursday before the open.
Constellation Brands (STZ) - earnings Thursday after the close.

Micron delivered strong numbers for the current quarter last night, but missed expectations for next quarter and next fiscal year. This was the exact scenario that I expected to play out. Strong numbers, but not the growth going forward that investors may have hoped for.

I sent out the trade at 3:44pm so I know not everyone was able to get it - but sometimes when making these trades on earnings I really don't want to be exposed to trading volatility prior to the event. With a market this volatile, the stock could easily trade 2% up or down with a market move ahead of their numbers. I know it's easier when the trades are sent out earlier and I do my best to give everyone time to initiate their position, but the opportunity presented itself last night so I took the trade.

We initiated a credit spread from $51-$55 last night. This option expires Friday. We will see how MU opens today and will look to hold this for the week and attempt to get a max profit as long as MU closes below $51 by Friday's close. Our breakeven is $52.31.

Revenue for the quarter came in at nearly $6.1 billion, beating Wall Street's $5.9 billion forecast and up about 24% year over year. Adjusted earnings of $1.08 per share also exceeded analysts projections.

However, going forward the outlook was not as great: Micron said it expects adjusted fiscal first-quarter earnings of 40 cents to 54 cents a share on revenue of $5 billion to $5.4 billion, while analysts had forecast earnings of 66 cents a share on revenue of $5.27 billion.

It's trading lower this morning, but with the recent market volatility anything is possible over the next 3 days so stay tuned for updates.

DIS layed off 28K workers last night across its parks, experiences and consumer products segment. While Disney’s theme parks in Florida, Paris, Shanghai, Japan and Hong Kong have been able to reopen with limited capacity, both California theme parks have remained shuttered. Around 67% of the 28,000 laid off workers were part-time employees, said Josh D’Amaro, head of parks at Disney.

The parks, experiences and consumer products segment is a vitally important part of Disney’s business. Last year, it accounted for 37% of the company’s $69.6 billion in total revenue.

Disney remains under pressure as their parks business continues to struggle while operating with limited capacity and some of their parks not yet open. Disney looks to open at about $123.15, which is right around the low from July 15th when they last announced earnings.

STZ has traded nicely this week ahead of their earnings Thursday after the bell.

Options Trades:
MU Sold a $51-$55 credit spread for $1.31. This option trade expires Friday.

Short Term portfolio:
None

Long Term portfolio:
Long half a position in DIS at $118.63. Disney is trading at $123.00. Stop is $98.45.
Long half position in UBER at $31.50 or better. Uber is trading at $35.27. Stop is $26.24.
Long half position in STZ at $180.50. STZ is trading at $187.52. Stop is $164.05.

Timer Digest Signals: S&P: Bearish Gold: Bullish Bonds: Bullish