Next Day Prep: Tech Exodus ServiceNow Shocker & Real Estate Rumble
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome to Next Day Prep! It is Monday, December 15th, 2025. Despite a red day for Big Tech, an interesting rotation is underway. Let’s dive in!
Overnight Headlines
- ServiceNow (NOW) down over 11% after announcing plans to acquire cybersecurity firm Armis for $7 billion. KeyBanc downgraded the stock to Underweight, citing concerns over valuation and business model pivot.
- Zillow and CoStar faced significant losses amid reports of Alphabet testing real estate listings in search results, impacting niche players.
- Tesla defied the trend by rising 3.5% on Robotaxi testing news in Austin.
Economic Announcements
President Trump narrows down Fed Chair candidates to Kevin Hassett and Kevin Warsh. Market awaits the November Employment Situation Report for critical insights into labor market conditions and potential policy implications.
Earnings Highlights
- Bristol-Myers and Eli Lilly saw positive movements in the healthcare sector, reflecting a flight to safety.
- Broadcom and Oracle continued post-earnings declines, signaling a pullback in AI-related stocks.
Top Movers
- SPY consolidating around 680. Watch for support at 680 and resistance at 681.70.
- S-A-I-C shows relative strength and may continue upward if it breaks above 101.80.
- VCSO a potential reversal play with room to move if it holds above 54.50 towards 56.
Quick Trade Ideas
Watch the 680 level on SPY, monitor the job report at 8:30 AM Eastern, and consider setups in S-A-I-C and VCSO for potential trades.
Key Takeaway
Focus on risk management, avoid chasing tired tech stocks, and stay nimble in market rotations. Good luck with your trades!