Next Day Prep: Small-Caps Surge on Rate Cut Optimism!
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
The market saw new all-time highs for the S&P 500 and the Nasdaq today, but the real story was a rotation day, with small-caps leading the charge fueled by rate cut optimism.
Overnight Headlines
- Materials up 1.7%, Health Care strong at 1.6%, Consumer Discretionary up 1.3%
- Homebuilders ETF XHB jumps 4.5%
- Earnings disaster of the day: CoreWeave (CRWV) down over 20% due to underwhelming guidance
Economic Announcements
Keep an eye on tomorrow morning’s PPI inflation data at 8:30 Eastern for potential market impact.
Earnings Highlights
- Amazon (AMZN) showing upward momentum
- KLAC (KLAC) looking strong in the semiconductor space
- SOUN testing $17, Palantir (PLTR) building a base around $184
Top Movers
Gildan (GIL) and Hanesbrands (HBI) merging
Significant insider buying at Eli Lilly
Downgrades on Target (TGT) and C3.ai
Quick Trade Ideas
- Look for a break above $225 in Amazon (AMZN)
- Monitor $233 level in Apple (AAPL) for continuation or $235 for a breakout
- Watch key resistance levels: 646 for S&P 500, 581 for QQQ, and VXX above 39 as a volatility indicator
Key Takeaway
Rotational trading is key. Focus on small-caps, cyclical sectors, relative strength, and be prepared for potential market moves after the upcoming PPI inflation data announcement.