Next Day Prep: Tech Fears Ease, Mega-Caps Rally Pre-Weekend
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 was a rollercoaster in the markets, with a flat close for the S&P 500 that belied the day’s drama.
Overnight Headlines
- President Trump’s social media post on China and trade rattled the markets initially.
- Bloomberg reported on potential tech sanctions on China, leading to session lows.
Economic Announcements
Key economic data for April showed strong personal income growth, moderated inflation, and an uptick in savings rate. The PCE Price Index dipped slightly, helping allay inflation fears.
Earnings Highlights
- Ulta Beauty (ULTA) surged nearly 12% post-earnings. Costco (COST) had a strong day, propelling the consumer staples sector.
- Elastic (ESTC) faced a sell-off despite strong Q4 performance due to cautious guidance.
Top Movers
NVIDIA (NVDA) and other semiconductors saw selling pressure while mega-caps and consumer staples outperformed.
Quick Trade Ideas
Continuation Plays:
- UNH, MA, and V showing strength for potential trades.
Anticipation Setups:
- CRWD, ISRG, and META displaying coiling patterns for potential breakouts.
Key Takeaway
Traders should navigate the market cautiously with a focus on key support and resistance levels. Tech and healthcare sectors present notable opportunities, but tariff-related uncertainties and mixed sentiment warrant vigilance.