Morning Dose: Palantir Plunge Sparks AI Sell-Off
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Person1: Welcome to The Morning Dose – Everything You Need to Know Before the Market Opens.
Person2: Good morning! It looks like we’re starting the day in the red. Futures are pointing to a lower open across the board.
Person1: They certainly are. It feels like that big AI rally is finally hitting some resistance. Tech stocks, especially the mega-caps, are leading the way down this morning.
Overnight Headlines
Person2: The poster child for this pullback is Palantir, down almost eight percent in pre-market despite a strong earnings report. Valuation concerns are driving profit-taking.
Earnings Highlights
Person2: On the positive side, Spotify is up over five percent, beating EPS expectations significantly. However, Uber is down over four percent despite favorable revenue numbers, reflecting market demands for perfection.
Top Movers
Person1: Sarepta Therapeutics, Insperity, and JELD-WEN are among the big losers, while Denny’s and Upwork are soaring on acquisition news and strong earnings, respectively.
Quick Trade Ideas
Person2: Analyst ratings show Apple upgraded to Buy but DraftKings downgraded to Neutral, indicating mixed signals in consumer-facing names.
Economic Announcements
Person2: Watch for the Trade Balance, Factory Orders, and JOLTs Job Openings report today for insights into the labor market.
Key Takeaway
Person2: Market sentiment is bearish with a consolidation pattern. Key support for the S&P 500 is crucial at around 675. Stay cautious, watch for relative strength, and manage risk carefully in today’s trading environment.