Next Day Prep: Bond Market Surge Sparks Stock Selloff
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome to Next Day Prep – What We Are Watching Tomorrow. The market faced challenges today as yields surged, leading to caution and consolidation across major indices.
Overnight Headlines
- UK CPI higher than expected for April, driving inflation concerns
- Reports on raising SALT deduction cap and Medicaid cuts adding to deficit worries
- Weak $16 billion 20-year bond auction fueling yield surge
Economic Announcements
Today’s MBA Mortgage Applications Index fell 5.1% week-over-week amid rising rates.
Earnings Highlights
- Palo Alto Networks (PANW) posted solid earnings with slight soft spots, stock down around 7%
- Target (TGT), Baidu (BIDU), Lowe’s (LOW), TJX (TJX), Medtronic (MDT) had mixed earnings performances
Top Movers
- Winners: Alphabet (GOOG) up nearly 3%, highlighting Communication Services
- Losers: UnitedHealth (UNH) down almost 6% on downgrade and negative report
Quick Trade Ideas
Consider long entries in tech and healthcare sectors for selective plays.
Key Takeaway
Rising yields, caution, and consolidation affecting major indices. Traders advised to watch support/resistance levels, sector rotation dynamics, and seize opportunities with disciplined risk management.
Tomorrow’s focus: Initial Jobless Claims, S&P Global PMIs, existing Home sales, and earnings from Analog Devices, BJ’s, Ralph Lauren, Autodesk, and Intuit.