Morning Dose: Tech Boost Fades Earnings Bloodbath Ahead
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Good morning and welcome to The Morning Dose – Everything You Need to Know Before the Market Opens. Futures are pointing to a modestly higher open, but yesterday was a bit of a rollercoaster. The market lacked direction with early strength driven by semiconductor tariff exemptions but fading as the day progressed.
Overnight Headlines
- S&P 500 (SPY): Tested all-time closing high, resistance at 640, support at 630.
- Companies: The Trade Desk (TTD) down around 30%, Sweetgreen (SG) down over 25%, Under Armour (UAA) off by about 13%, Expedia (EXPE) up nearly 16%, Gilead Sciences (GILD) up over 5%.
- Notable News: Tesla disbanding Dojo supercomputer team, UK clears Boeing’s acquisition of Spirit Aerosystems.
Economic Announcements
No significant U.S. economic data or Federal Reserve speakers scheduled for today. Market focus remains on earnings reports.
Earnings Highlights
- The Trade Desk (TTD): Down 30% on beating earnings but disappointing guidance, facing multiple downgrades.
- Sweetgreen (SG) & Under Armour (UAA): Both experiencing significant declines due to missed expectations and weaker guidance.
- Expedia (EXPE) & Gilead Sciences (GILD): Rising on strong earnings reports, particularly Expedia’s robust performance even with soft third-quarter guidance.
Top Movers
Expedia (EXPE) leading the gainers and The Trade Desk (TTD) facing substantial losses in the current market environment.
Quick Trade Ideas
- Potential Trades: Watching for continued strength in Expedia (EXPE) and considering opportunities in Block (XYZ) due to underlying buying interest.
- Sector Focus: Rotation into growth sectors like Technology and Consumer Discretionary while being wary of weak guidance in defensives like Utilities and Real Estate.
Key Takeaway
Focus on individual company guidance, maintain caution in stock selection amid market crosscurrents, and stay vigilant in navigating today’s sentiment-driven trading environment.