To The Moon

We saw the stock market show mixed results on 24 April 2024, major indices was fluctuating around their previous closing levels. Overall market breadth was generally negative, with more stocks declining than advancing on both the NYSE and NASDAQ.

The S&P 500 remained nearly unchanged. The Nasdaq Composite saw a slight increase of 0.1%. The Dow Jones Industrial Average experienced a minor drop of 0.1%. The Russell 2000 fell by 0.4%.

Amidst mixed earnings reports, IBM and Meta Platforms lead the market movement, with Meta declining more than 15% after their earnings report.

Earnings Announcements Influenced Market

There are several earnings announcement which has an influence on the market yesterday (24 April), Tesla surged 12% after announcing plans to start production of affordable models by early 2025, despite missing earnings and revenue forecasts. Texas Instruments climbed 5.6%, indicating an end to inventory corrections among some industrial customers. Boeing dropped 2.9% following disappointing quarterly results. Humana decreased by 3.7% after its earnings report.

The consumer staples sector led gains in the S&P 500, up by 0.93%, while the industrial sector faced the largest decline, down by 0.79%.

Treasury Yield and Crude Oil Inventories Movement

Economic data and treasury movements on Wednesday (24 April) also contributed to the market's performance:

Treasuries experienced losses, with the 10-year note yield rising by five basis points to 4.65%.

We saw the potential indication of a soft landing for the economy which is supported by the durable orders report for March exceeded expectations. Weekly EIA Crude Oil Inventories showed a significant draw, contrasting with the previous week's build.

We could see a difference in how the crude oil futures would move.

Commodity Prices and How Indices Have Performed Year-To-Date

We have seen crude oil and natural gas prices declining, but copper prices managed to edge higher. S&P 500 has gained 6.3% year-to-date, Nasdaq came in a bit lower at 4.7%, followed by S&P Midcap 400 at 4.3%. Dow Jones Industrial Average managed to gather 2.1%. Only Russell 2000 has a negative value at 1.5%.

Stocks To Watch (25 April 2024)

$IBM(IBM)$ experienced a 6% decrease in its stock value during extended-hours trading following a report of first-quarter sales that fell short of expectations, despite confirming its acquisition of HashiCorp (HCP).

The company reported earnings of $1.68 per share on $14.46B in revenue, with its consulting revenue at $5.19B and software revenue at $5.9B. IBM's CEO highlighted the company's growing enterprise AI business, including the Watsonx and generative AI momentum.

With the less-than-expected earnings, we saw that IBM has lost more than 8% in after hours trading, with the selling strength increasing before its earnings, we could see a sell-off today (25 April).

We might want to take a short position to take advantage for this bearish trading.

$Meta Platforms, Inc.(META)$ saw a 10% drop in its stock price after releasing first-quarter earnings. The company's revenues of $36.46B, a 27% increase year-over-year, narrowly beat consensus expectations.

Despite a significant increase in net income and a decrease in losses at its Reality Labs business, guidance for the current quarter was lighter than expected, causing investor concern.

Though we saw a falling wedge which could indicate a potential reversal but demand might decrease following a 10% drop in stock price after META earnings release, so this reversal should be going south.

This might be a time to short META or do an options PUTS.

$Tesla Motors(TSLA)$ reported its best post-earnings stock performance since the COVID-19 pandemic began, following positive remarks from CEO Elon Musk about new mass-market models and a revaluation of Tesla as an AI robotics company. This news contributed to a mixed day on Wall Street, with the Nasdaq Composite experiencing fluctuating performance.

Though we saw very nice upside by Tesla yesterday (24 April)m but in the long run, Tesla has not reached a safe level yet, and from the selling strength and MACD, we might see Tesla moving downwards, before market is clear about the low cost model strategy.

I would monitor and take a hold position before planning to add more stocks.

$Ford(F)$ exceeded first-quarter expectations with a Non-GAAP EPS of $0.49 and revenue of $42.78B, driven by strong demand for its commercial vehicles and an increase in hybrid volumes. The company also raised its full-year adjusted free cash flow target.

Ford has finally came out from its low period, and the strong demand for its commercial vehicles does give market the confidence to drive up demand (buying) and we saw a MACD crossover, I would be expecting Ford to provide a pretty decent movement today (25 April).

I would be looking at the price action to take a short LONG position.

$Taiwan Semiconductor Manufacturing(TSM)$ revealed plans to implement a new semiconductor manufacturing technology by the second half of 2026, aiming to enhance chip performance for AI applications, putting it in direct competition with industry giants like Intel (INTC).

Summary

Even though we saw a mixed market performance yesterday, there are 2 members of Mag 7 results out, I would watch out for Microsoft and Alphabet results to see if the tech stocks could help S&P 500. Something we can look at is also the energy stocks, they might post lower than expected revenues, but I believe there is potential.

Appreciate if you could share your thoughts in the comment section whether you think market would continue to show mixed movement after strong tech stocks lead?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.