Next Day Prep: NVIDIA Earnings Key Catalyst for Market Surge
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
The S&P 500 hit a new record high, signaling a cautious market sentiment as traders await NVIDIA’s earnings to potentially steer the market direction.
Overnight Headlines
- Energy sector led with over 1.2% gain fueled by rising crude oil prices.
- Software sector standout MongoDB (ticker: MDB) surged nearly 38% on strong financial performance and cloud database platform growth.
- Other software stocks like Datadog, ServiceNow, and Salesforce saw positive momentum.
Economic Announcements
Key upcoming economic events include GDP and jobless claims on Thursday, with Friday’s PCE report being the highlight as a crucial inflation gauge for the Fed.
Earnings Highlights
Kohl’s (ticker: KSS) soared 24% post-earnings, standing out in the retail space with a significant earnings per share beat.
Top Movers
- C-R-M (Salesforce) showed strength, up over 2.5%, with potential for further upside breakout.
- Monolithic Power Systems (MPWR) displayed bullish signals and consolidation, primed for a potential breakout.
Quick Trade Ideas
For Salesforce (CRM), watch for a breakout above $251 with entry on a pullback to $248-$249, targeting $251, supported by a stop-loss below $247.50.
For Monolithic Power Systems (MPWR), consider entry on a dip to $865, targeting breakouts at $870, $875, and $880 with a stop-loss below $860.
Key Takeaway
Market outlook remains bullish with broadening risk appetite. Software sector leads the way with NVIDIA’s earnings as a significant upcoming catalyst. Remain nimble, know your levels, and stay alert for reactions to key economic data.