Next Day Prep: Inflation Signals Mixed; Energy Shines Bright
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! Wednesday was a rollercoaster in the markets, with initial enthusiasm from the CPI data giving way to midday profit-taking. The S&P 500 and Nasdaq tried to push higher but ended down, while the Dow held steady.
Overnight Headlines
- Inflation numbers came in softer than expected, with year-over-year CPI ticking up.
- U.S.-China trade talks yielded no breakthroughs, with tariffs remaining unchanged.
- Energy stocks surged on Middle East tensions and bullish oil reports.
- Tech sector saw some volatility with Apple and NVIDIA underperforming.
Economic Announcements
Thursday’s focus shifts to May PPI data and weekly jobless claims, providing insights into inflation trends and the labor market.
Earnings Highlights
Stocks to watch: Dave & Buster’s (PLAY) impressed despite missing earnings as sequential sales improvement boosted sentiment. Chewy (CHWY) and DoubleVerify (DV) beat estimates, while Victoria’s Secret (VSCO) and GameStop (GME) had mixed results.
Top Movers
Energy sector continued to rise, while Consumer Discretionary and Materials faced challenges. Tech stocks saw mixed performance, with notable movers like quantum computing firms after positive comments from NVIDIA’s CEO.
Quick Trade Ideas
- Microsoft (MSFT): Potential breakout above 475.25, targeting 476.50 with support at 472.
- CrowdStrike (CRWD): Bullish breakout above 477 could lead to 478.50, with support at 474.
- ONC: Testing resistance at 262.98, with support at 261.50 for potential upside breakout.
Key Takeaway
Traders should monitor emerging sector rotations, key index levels, and individual stock setups for trading opportunities amidst market volatility and cautious optimism.