To The Moon

The stock market started the session on 02 July with more mixed reaction before we saw an increase in buying activity in the afternoon session. This helped the market to close on an upbeat note.

All major indices closed near their day highs, with S&P 500 surpassing 5,500 for the first time and NASDAQ was at a fresh all-time high. Market breadth was mixed through most of the session, but advancers had a 2-to-1 lead over decliners at the NYSE and an 11-to-10 lead at the Nasdaq by the close.

Mega Cap Tesla, Apple, Amazon and Microsoft Performance Standout

Throughout the entire trading session, some mega cap stocks outperformed by adding to gains in the afternoon session. $Tesla Motors(TSLA)$ performance standout by jumping 10% after it reported better-than-expected Q2 delivery numbers.

Apple (AAPL), Amazon (AMZN), and Microsoft (MSFT) contributed as well as influential winners by hitting the 52-week high each on 02 July.

S&P 500 Consumer Discretionary Sector Biggest Winner

While we saw many stocks was in the afternoon session and improve their gains, the equal-weighted S&P 500 logged a 0.5% gain, and the market-cap weighted S&P 500 rose 0.6%. Only two of the S&P 500 sectors closed with declines: health care was down by -0.4% and energy was down by -0.2%.

The consumer discretionary sector was the top winner by gaining +1.81%) because of gains in Telsa (TSLA) and Amazon (AMZN).

Yield Drop Provide Support For Equities

In recent days, the drop in market rates following solid losses in Treasuries provide support for equities.

Following the comments from Fed Chair at the ECB Forum on Central Banking, together with JOLTS - Job Openings Report for May that showed an increase in openings to 8.140 million from a downwardly revised 7.919 million (from 8.059 million) in April, the 10-year note yield dropped four basis points to 4.44%, and the 2-year note yield declined three basis points to 4.74%.

Fed Chair acknowledged progress in reducing inflation but emphasized the need for more confidence in the trend. Speaking at the ECB Forum in Sintra, Portugal, Powell noted that the economic boom seen in the latter half of 2023 was unexpected and highlighted the ongoing efforts to manage inflation.

Stocks To Watch

$Paramount Global(PARA)$ is in discussions to sell the Black Entertainment Television network for up to $1.7 billion to buyers including Chinh Chu of CC Capital and Scott Mills, CEO of BET. The shares of Paramount surged 5.6% to $10.71 as the sale talks progress. Earlier, the company had received interest from media mogul Byron Allen, who had offered up to $3.5 billion for both BET and VH1 channels.

Looks like PARA might have another positive run today (03 July) with their sales of Black Entertainment Television network. Technical side MACD has show that PARA has been moving slowly upside after its bullish MACD crossover, KDJ is also showing strength with J value moving higher with strength.

PARA might aim to clear its previous high logged in early June, at around $12.65, I will be looking to take another position.

Tesla (TSLA) saw a significant 10% surge, adding over $68 billion in market value, following the release of its quarterly deliveries that beat consensus estimates. This strong performance helped buoy investor sentiment and contributed to the overall positive movement in the tech-heavy Nasdaq Composite.

Following my article on the price target, Tesla Stock Price Target Might Clear $220 If Deliveries Number Surprise, Tesla might make another move towards the next price target level of $251.08, after clearing $223.18.

GameStop Corp. (GME) rose 3.69% amid higher-than-average trading volume after plaintiff Martin Radev dropped a lawsuit against Keith Gill, which had alleged a pump and dump scheme. The lawsuit can be refiled in the future, but for now, the dismissal has provided some relief to the stock.

This stock is experiencing some volatility so this might be something to watch on the sideline, unless you are already holding a position.

$Bank of America(BAC)$ received an upgrade from Seaport Research Partners, which raised its rating from "Neutral" to "Buy" and set a price target of $48. The bank's EPS growth estimates have improved, reflecting better net interest income and asset sensitivity.

BAC has shown a BUY signal from the KDJ on 28 June, and after that a bullish crossover at the MACD was formed, with these 2 indicators, it looks like BAC is in the early stage of an upside. The current stock price could be considered.

Summary

With mega cap stocks once again helping to lift the indices, I personally would think that there might be a rally but not a strong one, but there are some names worth looking at, Tesla, Paramount and Bank Of America.

Appreciate if you could share your thoughts in the comment section whether you think market would stage another rally today (03 July)

@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.