Next Day Prep: Tech Shines as Banks Bleed Today’s Market Movers
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. The market tried to rally early on some AI enthusiasm, but that faded fast. S&P 500 down six-tenths of a percent, Nasdaq down half a percent, and small caps took a hit with the Russell 2000 down over two percent, signaling a risk-off sentiment.
Overnight Headlines
The financials sector led the market downturn, with insurers like Marsh McLennan and Travelers affected by negative sentiment. Fraud revelations involving Zions Bancorp and Western Alliance added to credit quality concerns, leading to a broad retreat in the market.
Economic Announcements
The Philadelphia Fed survey posted a significant miss, indicating a sharp slowdown in manufacturing activity. This fueled a flight to safety in the bond market, with money pouring into U.S. Treasuries and pushing yields lower.
Earnings Highlights
Strong earnings from Taiwan Semiconductor boosted the technology sector, while negative headlines hit companies like F5 Networks and United Airlines. Litigation news brought Kenvue to all-time lows.
Top Movers
J.B. Hunt Transport defied market trends with a 22% gain driven by a significant earnings beat, demonstrating quality in a challenging market environment.
Quick Trade Ideas
- Watch for continuation in Gold (GLD) as late-day price action signals a defensive bid.
- Consider AXTI in the tech sector for a potential test of the key five-dollar level.
- Biotech standouts like Corbus Pharmaceuticals (CRBP), IMAB, and SRPT show relative strength for potential follow-through moves.
Key Takeaway
In a risk-off market with credit concerns, seek tactical opportunities in sectors showing strength, such as gold, selective semis, and biotech. Listen to the market for entry points in leading names and stay vigilant for emerging trends.