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Market Rebounds after Jam Packed Week
Happy Sunday. Stocks rebounded slightly after arguably the busiest week of the year so far, lets discuss what happened below.
MARKET RECAP
Market Rebounds after Jam Packed Week
SPY Daily Chart
This markets digested a slew of information this week leading to a very up and down week, but ultimately rose after strong big tech earnings. SPY had back to back strong days on Monday and Tuesday and then Tesla kicked off Magnificent 7 earnings on Tuesday afternoon.
I think its safe to say that Tesla’s earnings were atrocious. They missed nearly every metric of their already bleak expectations, but Elon was able to boost the stock 12% on Wednesday by talking about the company accelerating their production of cheaper cars and commenting on future projects such as the Tesla Robotaxi. I hate to be bearish on the company but I really have a tough time seeing how the financials of this company can keep up with the stock price. The reality is that Tesla has struggled greatly to justify their stock price and the jump in stock price seems to be an overreaction on some of these projects. Not to mention they are far from being able to license this robotaxi business and there are many other companies such as ZOOX and Waymo who are miles ahead in the same industry.
The markets got absolutely crushed on Thursday after a super weak GDP report, the metric rose 1.6% which was well below the 2.5% that was expected. META led the way down falling over 10% after their Wednesday evening earnings report. The tech company crushed their earnings but fell based on some weak future guidance.
Google and Microsoft came in to save the day after both reporting very strongly on earnings. Google also announced a dividend and surged 10%. The markets ended the week strongly and SPY sits right on the 21 ema heading into a week with more big earnings reports on deck.
TRENDWATCH
Amazon Looks to Continue Strong Year After Earnings
AMZN Daily Chart
Amazon has had an incredible year so far but has fallen in recent weeks after breaking through the 21 ema. The 8 ema, 21 ema, and 50 ma are converging ahead of the companies earnings call on Tuesday. I plan on keeping my eye on this before to see what direction the company will go after earnings.
Last Weeks Trend: Microsoft
MSFT Daily Chart
Last week I pointed out MSFT as my trend watch to see if it could respond strongly to earnings. MSFT had an up and down week but ultimately rose after earnings and is sitting right at the 8 ema.
In the News
📱 President Biden signed the bill to ban TikTok.
🏦 FTC bans noncompete agreements
📈 Core Personal Consumption Expenditures price index rose 2.8% YOY in latest PCE Report.
UPCOMING WEEK
This week is another one that is slammed with important news and information. Here are some of the biggest events:
Tuesday: Amazon Earnings, Eli Lilly Earnings
Wednesday: Fed Interest-Rate Decision, Mastercard earnings
Thursday: Apple Earnings
Friday: April Jobs Report, Berkshire Hathaway Earnings