Next Day Prep: Tech Surge Propels Market Bull Run
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 bulls showed up strong to close out the week. The market woke up with both the S&P 500 and the Nasdaq reclaiming their 50-day moving averages, signaling a positive technical victory.
Overnight Headlines
- Micron (MU) delivered a blowout earnings report, igniting the semiconductor space and driving up stocks like Western Digital and Sandisk.
- Oracle rallied on reports of potential involvement in TikTok’s U.S. unit sale, boosting investor excitement in big tech.
Economic Announcements
No major economic announcements were highlighted in the briefing.
Earnings Highlights
- Nvidia (NVDA) led the Information Technology sector with a nearly four percent gain, contributing to the overall 2% sector increase.
- Nike (NKE) faced challenges, dropping over ten percent due to disappointing guidance and soft sales in China.
Top Movers
- Defense stocks, including Lockheed Martin (LMT) and RTX, surged as geopolitical headlines hinted at potential conflict with Venezuela.
- Carnival Cruise Lines beat earnings, rising nearly ten percent, showcasing a stock-specific market environment.
Quick Trade Ideas
- Ciena (CIEN) showed strong potential with expanding volume and relative strength, providing a dip buy opportunity on a pullback to around 229.
- Vertex Pharmaceuticals (VRTX) demonstrated strong momentum, targeting a run to 463 or 465 if it holds above 458.
Key Takeaway
Focus on momentum in the Tech and Biotech sectors, watch key resistance levels on major indices, be cautious with gold miners like H-L and GDXJ, and consider plays like Abercrombie (ANF) for potential upside in the retail sector.
Overall, the market regained the 50-day moving average with a cautiously bullish bias, emphasizing the importance of prudent trading strategies and letting setups develop.