Next Day Prep: Market Mayhem High Stakes & Hard Hits
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome to Next Day Prep! Following a tumultuous end to the week, the market experienced a significant downturn driven by a mix of tariffs, weak economic data, and tech sector weakness.
Overnight Headlines
- Tariffs: Brazil facing a 50% tariff, Canada at 35%, and a 40% tariff on transshipped goods added uncertainty to the global supply chain.
- Jobs Report: Only 73,000 new jobs created, with significant downward revisions to prior months.
- ISM Manufacturing: The index at 48 indicated continued contraction in the manufacturing sector.
Economic Announcements
The market reacted strongly with the S&P 500 and Nasdaq experiencing sharp declines, while defensive sectors like Health Care and Consumer Staples remained resilient.
Earnings Highlights
- Reddit (RDDT): Revenue and ad revenue surged, showcasing successful AI-driven growth resulting in a 17% stock increase.
- Amazon (AMZN) and Apple (AAPL): Despite beating estimates, both stocks were adversely affected by market nervousness.
Top Movers
Focus on stocks showing relative strength like Cloudflare (NET) and AppFolio (APPF), and anticipation setups like MSCI and Cadence Design Systems (CDNS).
Quick Trade Ideas
Watch for key levels: SPY at 620 with support at 615, QQQ pivot at 553, and resistance at 555.
Key Takeaway
In a volatile market, seek opportunities in AI-related names and earnings winners while remaining nimble and adaptable to market conditions.