Next Day Prep: Tech Giant Meta Platforms Acquires AI Startup Game Change…
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome traders to Next Day Prep – What We Are Watching Tomorrow. As we near the end of 2025, the market seems to be in a holding pattern. Today, major indices like S&P 500, Nasdaq, and Dow showed minimal movement, reflecting a lack of catalysts and dwindling volume. The ‘Santa Claus’ rally excitement from last week is fading, and the market appears to be waiting for a new driver of momentum.
Overnight Headlines
- Energy sector emerged as a standout leader, with oil and gas producers driving gains.
- Tech sector, led by companies like NVIDIA and Apple, experienced downward pressure, weighing on overall market performance.
- Meta Platforms announced the acquisition of Singapore-based AI startup Manus, providing a sentiment boost to the Communication Services sector.
Economic Announcements
No major economic announcements reported overnight.
Earnings Highlights
- Applied Digital (A-P-L-D) announced plans to spin off its cloud unit, a strategic move to unlock value in the AI compute business.
- HubSpot (H-U-B-S) showcased strong momentum with potential upside based on technical analysis.
- Defensive plays like Eli Lilly (L-L-Y) in the healthcare sector showed stability amidst market fluctuations.
Top Movers
- Micron (M-U) and HubSpot (H-U-B-S) presented as potential trade setups with favorable momentum.
- Eli Lilly (L-L-Y) and Mettler-Toledo exhibited resilience in a volatile market environment.
Quick Trade Ideas
Traders advised to remain cautious as sentiment indicators lean bearish, with potential support at 685 on SPY and 618 on QQQ. Look for relative strength in names like Micron (M-U) and HubSpot (H-U-B-S) for potential trading opportunities. In healthcare, Eli Lilly (L-L-Y) offers a steady, low volatility play.
Key Takeaway
While the market appears range-bound and lacking clear direction, traders should focus on select opportunities showing strength. Be mindful of key support and resistance levels and stay prepared for potential sudden moves amidst low volatility. Stay disciplined, manage risk, and keep a close eye on emerging trends. Good luck out there!