Next Day Prep: Market Shockwave Tesla Tanks, Stimulus Sinks
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Next Day Prep: Market Briefing
Intro & Market Mood
Market Summary: The S&P 500 approached the 6,000 level but closed lower at 5,921.20. Nasdaq turned negative YTD by 0.1%, Dow down 0.5%, Russell 2000 down 6.0%.
Overnight Headlines
- TSLA: Shares plummeted 14.3%.
- Sectors: Communication Services slightly up, Consumer Discretionary down 2.5%.
Economic Announcements
- Productivity: Q1 down by 1.5%, unit labor costs revised up to 6.6%, “stagflation undertones.”
- Jobless Claims: Initial claims rose to 247,000.
- Trade Deficit: April deficit fell to $61.6 billion, major impact on Q2 GDP expected.
Earnings Highlights
- CIEN (Ciena): Revenue growth of 23.6%, Q3 guidance above expectations amid tariff impact concern.
- FIVE (Five Below) & MDB (MongoDB): Beat estimates with strong future guidance.
Top Movers
CIEN: Dropped nearly 13% due to tariff impact despite strong revenue performance.
Quick Trade Ideas
Watch support at 590 and resistance at 595 for SPY. For QQQ, support at 520 and resistance above 527 are key levels.
Key Takeaway
Market sentiment turned risk-off with notable drops in major indices and sectors. Economic data hints at challenges ahead, with trade deficit numbers presenting a unique opportunity for Q2 GDP growth.