To The Moon

After significant declines experienced last week, we saw the stock market showing signs of recovery on Monday (22 April 2024). The market get off to a slow start before picking up momentum in the afternoon session.

The afternoon session momentum was mainly driven by early buying activity and also some short-covering activities. This recovery has helped the major indices to close higher with NASDAQ close more than 1% up and S&P 500 closing above the 5000 mark.

Reversal From Microsoft and Meta Platforms

Two major companies among the large-cap tech stocks managed to reverse their earlier losses to close higher. $Microsoft(MSFT)$ was initially down by 0.8% but it managed to close the session with a 0.5% gain.

$Meta Platforms, Inc.(META)$ managed to close slightly higher by 0.1% despite losing 1.6% in early session. These two tech stocks movements are significant as they are expected to report earnings this week with other mega cap tech stocks like Tesla and Alphabet.

Key earnings reports this week include Tesla which will be after today(23 April) marker close, Meta Platforms would be on 24 April (Wednesday) and Microsoft and Alphabet would be on Thursday (25 April). By the end of this week, nearly 40% of S&P 500 companies will have reported their earnings.

Sector Performance. IT and Financials Top Performers

The Invesco S&P 500 Equal Weight ETF (RSP, Financial) saw a gain of 0.8%, and all 11 sectors of the S&P 500 finished higher. Information technology and financials sectors were the top performers, with gains exceeding 1%.

The financial sector performance was boosted by bank stocks in particular, with the SPDR S&P Regional Banking ETF (KRE, Financial) and the SPDR S&P Bank ETF (KBE, Financial) closing higher by 1.8% and 1.7%, respectively.

Note Yield Pretty Flat

We will be expecting some important economic data this week, on Thursday (25 April), we will have the Advance Q1 GDP report, followed by the Federal Reserve's preferred inflation measure, core-PCE Price Index on Friday (26 April).

Bond yields show minimal changes, with the 10-year note yield slightly up and the 2-year note yield unchanged.

Commodities Varied Day And Highest Growth Investment Ratio

Commodities experienced a varied day, with slight movements in crude oil and natural gas, but significant decreases in gold and silver prices. The stocks with the highest growth investment ratio, forecasting a slowdown in capex and R&D growth from 10% in 2023 to about 7% in 2024.

Despite this deceleration, first-quarter real GDP growth stood at 3%, supporting solid capex growth for the next year. However, high interest rates could pose challenges to accelerating capex growth.

$Palantir Technologies Inc.(PLTR)$ saw its shares rebound, closing 2.5% higher after a six-day losing streak. The company's impressive 141% surge in the last 12 months outper.

We might be seeing a reversal to the bullish side with a falling wedge, but we need to buying strength (demand) to come back, and MACD making a confirmation for the reversal.

NYSE Explore Feasibility Of A 24/7 stock trading exchange.

The New York Stock Exchange is exploring the interest and implications of a 24/7 stock trading exchange. This initiative reflects the growing demand for extended trading hours and could revolutionize the way stocks are traded, offering investors more flexibility.

Summary

The signs of recovery in yesterday afternoon trading session does bring back confidence for the market. Traders and investors could be building up the momentum, and we might see some more recovery momentum.

But I think the information technology, AI and financials sector should continue to do well this week, with big tech names earnings coming, S&P 500 should stay above 5,000 mark.

Appreciate if you could share your thoughts in the comment section whether you think S&P 500 and NASDAQ would create new highs today (23 April) with stronger recovery momentum?

@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.