Next Day Prep: Rate Cut Focus Ramps Up, Stocks 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. The market put in another session of modest gains, kind of a slow grind higher after that big rally on Friday. The underlying pulse is cautiously bullish, with more buying pressure than selling. The market is digesting recent highs but still shows underlying strength.
Overnight Headlines
The big headline today wasn’t about earnings or data, but about the Fed! President Trump firing Fed Governor Lisa Cook. However, the market shrugged it off, staying laser-focused on rate cuts as the real driver of sentiment.
Economic Announcements
A massive beat in the durable goods number, with a positive surprise of 2.8% against expectations of a 3.5% drop. The core number, a proxy for business investment, was up over 1%, indicating real economic strength.
Earnings Highlights
Eli Lilly saw a nearly 6% surge on positive late-stage results for a new drug. Semtech surged over 15% on strong data center revenue growth of 92% year-over-year.
Top Movers
- LPLA (LPL Financial Holdings): Breaking out to new highs with increasing volume. Watch for support at $365 with potential targets at $368 and $370.
- ONDS (Ondas Holdings): Building significant volume, consolidating just under $5. Look for a clean break above $5 for a strong move higher with an entry around $4.90, target $5.20, and stop below $4.65.
Quick Trade Ideas
Keep an eye on tech and growth sectors with strong volume momentum. Key index levels to watch are:
- SPY (S&P 500 ETF): Support at 643, resistance at 645.70
- QQQ (Nasdaq 100 ETF): Support around 572.15, resistance at 573
Key Takeaway
The market is healthy, sentiment is bullish with a risk-on rotation, focus on tech and growth areas with strong volume momentum. NVIDIA’s earnings will likely set the tone for the rest of the week. Trade smart and watch for further opportunities.