To The Moon

We saw the stock market started the day on a positive note and maintained its momentum, ended the day near its highs. There are minimal selling pressure at the index level help to create this upbeat session.

Other factors like positive reactions to earnings reports, lower market rates, and widespread buying interest helps to maintain this upbeat session. Both small-cap and mega-cap stocks saw significant gains. The Russell 2000 Index experienced a 1.8% increase, while the $Vanguard Mega Cap Growth ETF(MGK)$ saw a 1.7% rise.

Yield Down Manufacturing PMI Softer

We saw a retreat from the 2-year note yield from the 5% mark, this boost the support for an early rise in stocks. The decline in yield was triggered by softer-than-expected preliminary manufacturing and services PMI data for April from S&P Global.

The manufacturing PMI dropped below the critical 50.0 threshold, Flash US PMI Composite Output Index(1) at 50.9 (March: 52.1). 4-month low. Flash US Services Business Activity Index(2) at 50.9 (March: 51.7). 5-month low. Flash US Manufacturing Output Index(4) at 51.1 (March: 54.0). 3-month low. Flash US Manufacturing PMI(3) at 49.9 (March: 51.9). 4-month low.

This provide a signal that we are moving from expansion to contraction, but despite this, we saw a strong New Home Sales Report for March and robust demand at a $69 billion 2-year note auction further supported market sentiment, leading to a decrease in both the 2-year and 10-year note yields.

Commodities In Mixed Movements - OIl Up, Precious Metals Mixed

Commodity prices varied, with crude oil and natural gas prices increasing, while gold, silver, and copper experienced mixed movements.

Notable Earnings Stocks

Several companies stood out due to their earnings performances, influencing market dynamics. These positive outcomes were somewhat offset by weaker results from Nucor and Packaging Corp.which negatively impacted the materials sector.

At time of writing we saw $Tesla Motors(TSLA)$ reported a significant earnings miss for Q1, with revenue falling 8.5% year-over-year to $21.30B, missing the consensus estimate. The company's EPS of $0.45 was below the $0.50 consensus and down from $0.85 a year ago, marking the lowest in ten quarters. Tesla's operating margin also saw a dramatic decrease from last quarter's 8.2% to 5.5% of sales. Despite these figures, Tesla delivered 386,810 vehicles in Q1, although this was a decrease from previous quarters.

Tesla stock price was up more than 10% in after hours trading. 1 min chart show that we are seeing strong buying strength coming back and there is MACD crossover.

$Visa(V)$ announced a successful Q2 with Non-GAAP EPS of $2.51, surpassing expectations by $0.08, and revenue of $8.8B, marking a 10% year-over-year increase. This growth was attributed to higher payments volume, cross-border volume, and processed transactions, showcasing the company's strong performance in the financial sector.

Yet we do not see buying sentiment into Visa but it gains more than 2% in after hours trading after its earnings release. We might want to monitor and watch the MACD for Visa if you plan to trade.

$General Motors(GM)$ shares surged following a Q1 earnings beat, raised guidance, and a notable $1B revenue beat. The automotive giant's performance, particularly in North American sales and EV production, has garnered investor attention and optimism.

We can see investors are coming back to buying sentiment after its earnings release, up more than 4%, but we will need to see if they can maintain this upbeat sentiment and continue its upside.

Summary

Market has maintained a good upbeat session after we saw minimal index selling pressure, and with some of the notable earnings, investors are positive looking towards the earnings.

I would think there are some potential trade you can look at on 24 April 2024 in Tesla, Visa and the big tech, there should be some good news coming the way pushing up the stocks. Bu do watch out for any profit taking (sell off)

Appreciate if you could share your thoughts in the comment section whether you think the upbeat session would continue today (24 April), ahead of big tech earnings?

@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.