Next Day Prep: Market Alert Tech Soars, Economy Wavers
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 showed a mixed performance with a churn session, lacking conviction due to disappointing economic data and trade tensions. The big cap-weighted indices managed to hold steady with support from key tech players like Meta, Amazon, and NVIDIA.
Overnight Headlines
Some notable highlights include CrowdStrike facing pressure post-earnings, while semiconductors shined. Weak economic data, such as the ADP Employment Change miss and ISM Services PMI contraction, impacted market sentiment, leading to lower Treasury yields.
Economic Announcements
- ADP Employment Change for May: Only 37,000 private-sector jobs added, missing expectations.
- ISM Services PMI for May: Slipped into contraction territory at 49.9%, fueling growth concerns.
Earnings Highlights
Notable earnings include Guidewire Software (GWRE)‘s strong report driven by a cloud-based model, and CrowdStrike (CRWD)‘s mixed reaction despite good figures.
Top Movers
Winners: Communication Services; Losers: Energy and Utilities. Major indices year-to-date: S&P 500 up 1.5%, Nasdaq up 0.8%, Dow marginally negative.
Quick Trade Ideas
- Continuation Play: Consider TEAM and Carvana (CVNA).
- Anticipation Setups: Watch HubSpot (HUBS) and Eli Lilly (LLY).
Key Takeaway
The market sentiment is cautious post-weak data, favoring defensive sectors. Traders should monitor sector rotation and volatility changes closely for strategic trading decisions, focusing on momentum stocks with proper entry and exit points.