Morning Dose: Tech Sector Battle Meta Surges, Microsoft Sinks
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome to The Morning Dose! Everything You Need to Know Before the Market Opens. Today’s market is shaping up to be a battleground in the tech sector with mixed signals and high volatility.
Overnight Headlines
- Meta Platforms (META): Gapping up nearly 9% in pre-market after beating earnings per share and providing strong first-quarter guidance.
- Microsoft (MSFT): Down almost 7% pre-market despite beating earnings and revenue, as soft guidance, especially in cloud services, disappointed investors.
- Tesla (TSLA): Up about 2.5% after beating EPS and reassuring traders with product pipeline updates.
- AI Investment News: Nvidia, Microsoft, and Amazon planning to invest $60 billion in OpenAI, keeping the AI trade active.
Economic Announcements
Jobless claims and trade balance data coming at 8:30 Eastern could influence the bond market and yields. Political risk is slightly reduced with a potential deal to avert a shutdown in Washington.
Earnings Highlights
- IBM (IBM): Up over 8% on solid beat.
- SAP: Down over 14% leading to software sector weakness.
- ServiceNow (NOW): Gapping down 9% despite a beat, reflecting high expectations for software companies.
Top Movers
Energy sector (XLE) showing relative strength and steady volume, potentially a safe haven amid tech sector volatility.
Quick Trade Ideas
Avoid chasing gaps. Monitor Energy sector for stability. Stay nimble and set strategic stops.
Key Takeaway
Market sentiment remains generally positive despite Microsoft’s drag. Watch for shifts around the SPY support level at 696. Exercise caution and adapt trading strategies based on unfolding events.