Next Day Prep: Fed Cuts Echo Rotation Winners and Losers
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 Fed announcement today led to a mixed market reaction, signaling a cautious yet optimistic sentiment among traders.
Overnight Headlines
- Fed Announcement: A 25-basis point cut as expected, but mixed views on future cuts caused initial market volatility.
- Sector Rotation: Money flowed from leaders to defensive/cyclical sectors post-Fed announcement.
- Stock Movement: NVIDIA faced challenges due to China-related concerns, while Lyft surged on autonomous ride-hailing partnership news.
Economic Announcements
No major economic announcements overnight.
Earnings Highlights
- Lyft (LYFT): Surged over 13% on partnership news with Alphabet’s Waymo for autonomous ride-hailing in Nashville.
- Netflix (NFLX): Upgraded to Buy with a high price target, while FedEx (FDX) was downgraded ahead of its earnings report.
Top Movers
- Leaders: Financials sector up 1%, Lyft (LYFT) surged, Netflix (NFLX) received an upgrade.
- Laggards: Technology sector down, NVIDIA (NVDA) faced setbacks on China-related news.
Quick Trade Ideas
- Continuation Plays: Watch APLD for a breakout above $20.15 and RGTI for a move above $22.55.
- Anticipation Play: Monitor NVIDIA (NVDA) for signs of stabilization and a potential reversal after recent declines.
Key Takeaway
Stay nimble and focus on stocks showing relative strength like APLD and RGTI for trading opportunities. Watch key index levels—SPY 660.68 and QQQ 591.75—for market direction cues. Be prepared for potential volatility and catalysts in stocks like Netflix, FedEx, and Workday.