Next Day Prep: Small-Caps Surge Amid Stock Split Frenzy
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 S&P 500 hit a new record high, led by mega-cap stocks like Tesla, Apple, NVIDIA, and Alphabet. However, market sentiment remains complex with a clear rotation into small-caps and mid-caps.
Overnight Headlines
The market shrugged off a disappointing ADP jobs report showing a loss of 33,000 private-sector jobs, focusing instead on positive news like the new zero-tariff trade deal with Vietnam.
Economic Announcements
Thursday is a key day for economic data with the June Nonfarm Payrolls report at 8:30 AM Eastern. Expectations are around 120,000 jobs created, which could impact market sentiment significantly.
Earnings Highlights
- Centene (CNC) experienced a major drop of over 40% after withdrawing its 2025 forecast due to lower growth and higher costs, affecting the health insurance sector.
Top Movers
Energy and materials sectors showed strength, with a focus on cyclicals. However, healthcare, especially Centene (CNC), faced significant challenges.
Quick Trade Ideas
- Continuation Play: Watch Applied Materials (AMAT) and Cadence Design Systems (CDNS) for potential entry points and uptrend continuation.
- Anticipation Play: Monitor Alphabet (GOOGL) and Amazon (AMZN) for breakout opportunities after recent consolidation.
Key Takeaway
Market continues at record highs with clear sector rotation. Focus on semiconductor and tech giants like AMAT, CDNS, GOOGL, and AMZN for potential trading opportunities. Thursday’s economic data could be crucial for market direction as it closes early for the holiday weekend. Trade smart in the face of potential volatility.