Next Day Prep: Tech Surge Fuels Market Highs
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 continues to reach new highs, with the S&P and Nasdaq breaking records. Despite concerns such as a looming government shutdown, the market’s focus remains on potential Federal Reserve rate cuts.
Overnight Headlines
- S&P & Nasdaq: Climbed to new records despite broader economic concerns.
- Technology Sector: Led the market higher, with semiconductor stocks hitting new highs.
- Energy Sector: Experienced weakness, driven by a drop in crude oil prices and specific company news.
- Tesla (TSLA): Reported record deliveries but saw a stock decline as investors assess future demand without tax incentives.
Economic Announcements
No major economic announcements reported overnight.
Earnings Highlights
- Fair Isaac (FICO): Surged over 17% on news of a new direct licensing program.
- Occidental Petroleum (OXY): Dropped over 7% after Berkshire Hathaway announced its acquisition of OXY’s chemical unit.
- Tesla (TSLA): Reported record deliveries but faced market concerns over future demand.
- AngioDynamics (ANGO): Gained over 6% on a positive earnings report, driven by growth in its MedTech segment.
Top Movers
- Sector Leaders: Technology & Semiconductor stocks drove market gains.
- Stock Pickers Market: Mega-cap tech and company-specific news moved individual stocks significantly.
- Warning Signs: VXX volatility index trending upwards, caution advised towards chasing extended moves.
Quick Trade Ideas
- Focus: Momentum names in semiconductors and cybersecurity.
- Stocks to Watch: AMPX for continuation, ZS for potential breakout in the cybersecurity space.
- Risk Management: Key support levels at SPY 668.80 and QQQ 605.30 to monitor for bearish scenarios.
Key Takeaway
Trade smart by sticking with strength in semiconductor and cybersecurity sectors, avoiding weaker areas, and closely monitoring key support levels amidst market uncertainty and Fed rate cut expectations.