Next Day Prep: Rally Roars Tariff Relief Ignites S&P Surge
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. Today saw a broad-based rally with buyers firmly in control, leading to a steady climb in the indices. The session reflected a fear of missing out as sidelined investors re-entered the market.
Overnight Headlines
- President announced a delay on EU tariffs until July 9th, easing negotiation tensions.
- Yields took a step back with the 10-year note falling below 4.50% and the 30-year under 5.00%.
- Consumer Confidence surged in May to 98.0, surpassing expectations and easing inflation concerns.
Economic Announcements
Total durable goods orders decreased 6.3% in April, with a notable drop in business spending indicated by nondefense capital goods orders. Housing prices showed slight moderation, reflecting a mixed economic picture.
Earnings Highlights
- PDD Holdings reported a revenue miss, leading to a 13.6% stock decline due to profitability concerns.
- AutoZone missed on EPS but Beat on revenues, while Bank of Nova Scotia reported revenues in-line.
Top Movers
Consumer Discretionary, Information Technology, and Communication Services led the market rally, outperforming other sectors. Mega-caps and small-caps joined the party, with Utilities and Energy being relative laggards.
Quick Trade Ideas
Continuation Breakouts: Watch TSLA, NFLX, and MSFT for potential upward movements based on recent strong volume and price stability.
Anticipation Breakouts: Consider AKYA, BWXT, ARGX, and CYBR for potential near-future breakout opportunities.
Key Takeaway
The market sentiment is cautiously bullish, driven by positive catalysts like the tariff delay and strong consumer confidence. Technology and Communication Services sectors are leading the rally, signaling a risk-on appetite. Traders should monitor major indices closely for support and resistance levels for potential trade opportunities.