To The Moon

On Monday (06 May 2024), we saw the stock market continued its upward trend from last Friday. The S&P 500 rose by 1.0% to close at 5,130, marking its highest level since 11 April.

The Nasdaq Composite and Russell 2000 both increased by 1.2%, while the Dow Jones Industrial Average saw a more modest gain of 0.5%.

Throughout most of Monday trading session, the market maintained a narrow range but we could see that there is a surge in buying activity 30 minutes just before actual session closed, this surge helped both the S&P 500 and Nasdaq Composite to a new intraday highs.

Significant Stock and Sector Performance

Monday’s gains were broad-based, with the equal-weighted S&P 500 closing up by 0.8%. Mega cap and semiconductor sectors provided the significant contributions. The Vanguard Mega Cap Growth ETF (MGK, Financial) advanced by 1.4%, and the PHLX Semiconductor Index (SOX) increased by 2.2%.

Significant stock movers included Meta Platforms, which climbed by 3.0%, NVIDIA by 3.8%, Microsoft by 1.7%, Amazon.com by 1.3%, and Eli Lilly by 4.3%.

These stocks, which constitute nearly 20% of the S&P 500, also helped push the information technology and communication services sectors up by 1.5% and 1.4%, respectively.

Positive Market Sentiment Supported By Treasury Markets Tranquility

The tranquility in the Treasury markets also supported the positive market sentiment.

We saw the yield on the 10-year note decreased slightly by one basis point to 4.49%, but the 2-year note yield edged up by one basis point to 4.82%. And there were no significant U.S. economic reports released on Monday (06 May 2024).

Investors are looking forward to the March Consumer Credit report, scheduled for release today (07 May 2024) at 3:00 p.m. Eastern Time.

Oil, Gold and Silver Edged Up While Gas Remain Flat

In commodities, crude oil prices slightly increased by $0.36 to $78.41, while gold and silver prices rose to $2331.10 and $27.60, respectively. Natural gas prices remained unchanged.

Stocks To Watch

$Palantir Technologies Inc.(PLTR)$

Palantir Technologies reported a solid first quarter with non-GAAP EPS of $0.08 and a revenue increase of 20.8% year-over-year to $634.33M, surpassing expectations. The company also raised its full-year revenue forecast to between $2.677B and $2.689B, a slight increase from previous estimates. This positive outlook reflects strong growth in both U.S. commercial and government sectors.

But we saw a 8.37% decline in after hours trading for Palantir, if we looked at how the last few hours trading is like, we saw heavy selling and it is very close to the lower range of support.

Palantir normally would not show a surge after its earnings, but the next day, so we will need to see what traders and investors movement is like today (07 May).

$Lucid Group Inc(LCID)$

Lucid Group experienced a notable day in the market with a 10.59% jump in its stock price, despite mixed quarterly results. The electric vehicle maker reported a GAAP EPS loss of $0.30, missing estimates, and a revenue of $172.74M, which also fell short. However, the company remains on track for its annual production targets, having raised significant capital to bolster its liquidity.

If we looked at how Lucid have been trading before its earnings, the demand (buying) is there to help push the share price higher, with MACD trending upside, I would think there is more upside trading today (07 May 2024).

$Vertex Pharmaceuticals(VRTX)$

Vertex Pharmaceuticals outperformed expectations with a Q1 Non-GAAP EPS of $4.76, beating estimates by $0.70, and a revenue increase of 13.5% to $2.69B. The company reaffirmed its full-year revenue guidance, indicating strong ongoing demand for its key products.

With the strong earnings outperformed expectations, we should be seeing demand (buying) increased for Vertex Pharma in today (07 May 2024) trading, MACD should continue to trend upwards.

Nikola is anticipated to release its first-quarter earnings soon, with analysts expecting a narrower loss compared to the previous year. The company continues to face significant challenges and scrutiny regarding its business model and market strategy.

Summary

I believe market should be able to go for upward trend, but March consumer credit report might shed some light on some financials stocks, as this could signal whether the earnings of these financials would benefit from any improvement in the consumer credit.

I think market would still be looking to ride on the earnings report stocks and see if there is any opportunities for any upside trade.

Appreciate if you could share your thoughts in the comment section whether you think we should still see upward trend helping S&P 500 and NASDAQ to get to its new highs?

@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.