Next Day Prep: Mega-Caps Flex Tesla & Meta Lead Charge
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! The market experienced a solid relief rally on Thursday, with the S&P, Nasdaq, and Dow moving up in an orderly fashion. The panic from earlier in the week seemed to evaporate, supported by calming geopolitical headlines and in-line inflation data.
Overnight Headlines
- Meta Platforms (META) and Tesla (TSLA) boosted the market with solid gains, leading the Communication Services and Consumer Discretionary sectors.
- Abbott Labs and GE Aerospace faced significant declines due to revenue misses and weak guidance, dragging down the Real Estate sector.
Economic Announcements
Key data to watch for tomorrow includes the release of the PCE Price Index and Personal Spending data, along with market reactions to Intel’s earnings report.
Earnings Highlights
- Meta Platforms and Tesla showed strong performance, gearing up for upcoming earnings reports.
- Netflix (NFLX) continued to struggle post-earnings, experiencing a decline.
Top Movers
- Top Gainer: Meta Platforms (META)
- Top Loser: Abbott Labs (ABT)
Quick Trade Ideas
Consider watching for continuation plays in Semiconductors and Industrials like AMD and Deere (DE). Avoid weak sectors like crypto proxies and monitor volatility closely for trading opportunities.
Key Takeaway
While the market showed signs of relief, caution remains as late-session profit-taking and elevated volatility suggest a trader’s market. Watch critical support and resistance levels such as 687 for SPY and 619 for Qs to gauge market direction.
Stay disciplined, manage risk, and stay informed for the next trading session. Good luck!