Next Day Prep: Tech Sector Soars Market Ignores Weak Jobs Data
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome to Next Day Prep, your guide for what we’re watching tomorrow. The market just printed fresh record highs for the S&P 500 and the NASDAQ. The tape is bullish. The momentum is undeniable. Stick with the leaders, manage your risk, and execute on the setups.
Overnight Headlines
- Nonfarm Payrolls beat expectations at 147,000, but with soft spots like a decreased labor force participation rate and increased long-term unemployment.
- Technology Sector surged over 1% as the administration lifted restrictions on exporting chip design software to China, benefiting companies like Cadence Design Systems (CDNS) and Synopsys (SNPS).
- TRIP Advisor (TRIP) gained nearly 17% due to activist investor Starboard Value taking a significant stake, signaling a potential shake-up.
Economic Announcements
Market Reaction: Equities surged with momentum despite bond yields pushing higher post-jobs report. Fed rate cut expectations plummeted. Stick with what’s working: tech and mega-cap leaders.
Earnings Highlights
- CDNS: Continuation watchlist for its fundamental catalyst.
- Datadog (D.O.G.): Added to S&P 500, with an entry target near $155.50 for a push towards $157.50.
- Microsoft: A stable, uptrending stock to watch for a move towards $499 if it holds above $497.50.
Top Movers
- Google: Consolidating for a potential breakthrough above $180.50.
- Apple: Consolidating near highs with an entry near $213 for a breakout play.
- Olo: Being acquired by Thoma Bravo at a 65% premium.
- Summit Therapeutics (SMMT): In talks with AstraZeneca for a potential $15 billion partnership.
Quick Trade Ideas
Stick with what’s working, tech and mega-cap leaders. Utilize specific price levels for entry and risk management. Look for consolidation setups and disciplined breakout plays.
Key Takeaway
The market sentiment is bullish, driven by tech and mega-cap leaders. Keep an eye on continuation plays like CDNS and anticipation setups like Google and Apple for potential moves. Manage risk, stick with the leaders, and trade smart.