Next Day Prep: Tech Giants Propel Market to Record Highs
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
The market closed with the Nasdaq reaching a record high while the S&P 500 narrowly missed its own record. Friday’s session was primarily driven by mega-caps such as Apple (AAPL), Alphabet (GOOGL), and Tesla (TSLA). This led to a selective rally with a notable focus on Tech and Communication Services while smaller stocks lagged behind.
Overnight Headlines
In terms of news flow, there were reports of additional possible Fed Chair nominations like James Bullard and Marc Summerlin, adding an element of uncertainty. Geopolitically, talks of U.S.-Russia negotiations over Ukraine and a potential summit between Trump and Putin were observed. Notably, the gold market experienced volatility following tariff speculations on gold bars.
Economic Announcements
The upcoming CPI report on Tuesday plays a pivotal role in driving market sentiment, as it provides key inflation data. Following that, Retail Sales on Friday will offer insight into consumer health.
Earnings Highlights
The Trade Desk (TTD) witnessed a significant decline, nearly 40%, following their Q3 guidance that fell in-line rather than exceeding expectations. Factors contributing to this included cautious forward-looking commentary related to tariffs impacting major clients, a sudden CFO departure, and the stock being priced for perfection after a substantial increase.
Top Movers
- ASML: Showing strength with consolidation around $721 support, a break above $723.50 could lead to a potential run towards recent highs.
- Home Depot (HD): Resilient around $387-$388 support level, signaling a potential move higher with an entry point around $388.60.
Quick Trade Ideas
For SPY, watch for resistance at 640 and support at 635. In QQQ, focus on resistance at 578 and support at 572 as pivotal levels. Stay alert for potential price action.
Key Takeaway
Market sentiment remains influenced by select mega-cap stocks, upcoming economic data, and recent earnings surprises. Traders should closely monitor key levels, stay attentive to price action, and be prepared for potential market shifts based on upcoming inflation and consumer data.