Next Day Prep: Investors Cheer Meta’s Pivot to AI
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. Today’s market seems to be holding its breath, with traders eagerly awaiting the PCE report as major averages drift sideways.
Overnight Headlines
- The S&P 500 edged up a mere tenth of a percent, while the Nasdaq saw a slight increase of two tenths.
- Market participants are cautiously observing the flat index as significant rotation and divergence play out beneath the surface.
- Notable movements include NVDA climbing over two percent, contrasting with INTC plummeting more than seven percent due to geopolitical concerns.
- META saw a remarkable three percent surge on reports of budget reallocation towards AI development, demonstrating a positive market sentiment shift.
Economic Announcements
Jobless claims report showed 191k claims, the lowest in two years, indicating a robust labor market that may influence the Fed’s future policy decisions.
Earnings Highlights
- SNOW faced an 11% decline despite beating Q3 expectations, emphasizing the market’s focus on guidance and valuation.
- CRM soared nearly four percent post-earnings, reflecting investors’ preference for quality and stability in software entities.
Top Movers
- DG surged 15% on potential short squeeze opportunities, emphasizing unexpected strength in the retail sector.
- Industrial and infrastructure sectors show momentum with tickers like FIX demonstrating breakout potential.
Quick Trade Ideas
Consider monitoring tickers like AEM and DELL for possible trading opportunities as they exhibit promising technical signals and accumulation.
Key Takeaway
As we approach the PCE release, keep a close eye on technical levels in the SPY and QQQ while exploring actionable trades in industrials, infrastructure, and select commodities like gold.
Good luck on Friday’s session and stay alert for potential opportunities in the evolving market landscape. Until next time!