Next Day Prep: Microsoft’s Azure Growth Signals Tech Surge
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Stocks closed higher, with the S&P 500 marking its eighth straight win, closing above its 50-day moving average at around 5,592. Microsoft and Meta earnings were the catalysts driving tech and communication services higher.
Overnight Headlines
- Microsoft reported over $70 billion in revenue with Azure boasting a 35% growth rate.
- Healthcare sector took a hit with disappointing earnings from Eli Lilly, Qualcomm, and McDonald’s.
- Optimism around trade talks coupled with weakening economic data fueled hopes of a possible Fed pivot.
Economic Announcements
Friday’s job report, including nonfarm payrolls, average hourly earnings, and the unemployment rate, will be crucial with consensus at 130,000 new jobs.
Earnings Highlights
- Positive earnings from Microsoft showing strength in cloud demand, with a strong outlook for next quarter.
- Meta beat expectations on earnings and revenue, with lower expense guidance.
Top Movers
- Positive trial results for GlaxoSmithKline, new dataset development by Illumina and Ovation.io, and outperforming tests by Castle Biosciences in healthcare.
- Contracts and acquisitions by General Dynamics, Kimberly-Clark, and MetLife in the financial sector.
Quick Trade Ideas
Trade Ideas: Watch for breakout opportunities in stocks like HUBS, CHKP, and PANW, with support/resistance levels provided for trading.
Key Takeaway
Stay alert for potential market shifts amid strong earnings reports, geopolitical news, and ongoing trade discussions. Manage risks and seize breakout opportunities in select stocks.