Next Day Prep: Market Insight Tech Bloodbath, Dow Defies What’s Safe Now?
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Next Day Prep – What We Are Watching Tomorrow! Traders saw a split tape today with red in growth names while indices presented conflicting stories of a market in transition. The tug-of-war between sectors is evident, with money moving aggressively between addresses but not leaving the market entirely.
Overnight Headlines
- Nasdaq Composite (COMP) dropped 1.5%, slipping into negative territory for the year.
- Dow Jones Industrial Average (DJI) was up 0.5%, nearing fresh highs.
- S&P 500 (SPX) tested its critical fifty-day moving average, seeing a brief dip triggering algorithmic selling.
Economic Announcements
Watch out for the Weekly Initial Claims data at 8:30 AM Eastern, as it could impact rate outlooks based on the numbers reported.
Earnings Highlights
- AMD (Advanced Micro Devices) beat earnings and raised guidance, yet the stock fell 17% in a ‘sell the news’ scenario.
- Energy sector surged over 2%, with crude oil prices rising around $65/barrel due to geopolitical tensions between the U.S. and Iran.
- Materials sector showed strength, notably with companies like Smurfit Westrock and Amcor performing well.
- Healthcare stocks like Eli Lilly (LLY) and Amgen (AMGN) soared post-earnings, marking a defensive move during tech valuation readjustments.
Top Movers
Enphase Energy received an upgrade to ‘Outperform,’ while Cloudflare (NET) was upgraded to Buy. Conversely, PayPal faced downgrades from HSBC and Canaccord, signaling caution.
Quick Trade Ideas
Watch for further rotation into Energy and Healthcare sectors, keep a close eye on the S&P 500’s fifty-day line, and prepare for Amazon’s earnings report after the bell.
Key Takeaway
With the market in transition, stay sharp, adjust your strategies to sector rotations, and keep a watchful eye on critical indicators and earnings reports.