To The Moon

Yesterday (17 April) trading session, there was a slight green movement, but most of the trading session on NYSE show mostly negative performance, with the volume of trades being below average.

We saw some early attempts to buy the dip, but the market did not manage to keep up the upward momentum. Indices closing in their lows but still reflecting an overall downside. NASDAQ lost more than 1% and S&P 500 lost 0.58%, these was largely influenced by underperformance in mega cap stocks and the semiconductor sector.

Mega Cap and Semi Sector Dip

The Vanguard Mega Cap Growth ETF (MGK) saw a decrease of 1.0%. PHLX Semiconductor Index experienced a significant drop of 3.3%. Information Technology in the S&P 500 was the worst-performing sector, down by 1.7%, followed by Real Estate which declined by 0.8%.

On the positive side, Utilities led gains with a 2.1% increase, with Consumer Staples and Materials sectors also seeing upticks of 0.5% and 0.2%, respectively.

We saw $ASML Holding NV(ASML)$ declining by 7.1% after reporting weaker-than-expected Q1 bookings, this is the most significant worst performer in the semiconductor sector. $NVIDIA Corp(NVDA)$ lost 3.9% affected by market consolidation movements despite Nvidia is up nearly 70% for 2024.

On the air transport stock, $United Continental(UAL)$ have a stellar performance after they report a pleasing quarterly results, they have surged by 17.5%.

PM Recovery Attempt Brought By Yield Favorable Movements

There was favorable movements in Treasury yields, this has triggered some recovery attempts in the afternoon trading session. The 10-year note yield decreased by seven basis points, and the 2-year note yield fell by three basis points.

The strong demand at $13 billion 20-year bond auction on 17 April 2024 supported the favorable movements in Treasury yields. 18 April 2024 economic data revealed a 3.3% increase in the Weekly MBA Mortgage Applications Index and a 2.74 million barrel increase in weekly crude oil inventories.

These has help to trigger a recovery attempt in the afternoon trading session.

Jobs Cuts In Alphabet (Google) and Rivian. More to come?

There are 2 stocks that has reported layoffs and job cuts. This might be some signal of what we could be expecting in coming weeks. $Alphabet(GOOGL)$ is reportedly making significant changes, including substantial layoffs and restructuring within its finance and real estate divisions.

They are planning to establish "growth hubs" in Bangalore, Mexico City, and Dublin, signaling a shift in strategy amidst ongoing staff reductions. This move comes as Google aims to adapt to the competitive tech landscape, particularly in the AI sector, where it faces stiff competition.

$Rivian Automotive, Inc.(RIVN)$ announced further job cuts as part of its efforts to achieve profitability amidst a challenging electric vehicle market. The company's focus on reducing costs and improving margins is critical as it navigates production and sales hurdles in a highly competitive sector.

Tesla is also performing the layoffs. This could mean what happen post pandemic on the mass hiring might not sustained.

Summary

With recovery attempt to make an upside in the session, there are too many negative performance which outweigh what we are seeing positively. Traders and investors might be taking a course to buy the dip but the overall market sentiment is still weak.

We have some more economic data coming today (18 April) which includes the Weekly Initial Claims, Continuing Claims, April Philadelphia Fed survey, March Existing Home Sales, March Leading Indicators, and Weekly natural gas inventories.

I would take these data to look for insights into the economic landscape and potential market movements.

Appreciate if you could share your thoughts in the comment section whether you think market would be making another recovery attempt while traders and investors are looking to buy the dip?

@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.