To The Moon

Market saw broad gains across major indices on 09 May trading session. Increases are ranging from 0.3% to 0.9%. The S&P 500 notably broke past the 5,200 resistance level, marking its first close above this mark since April 9.

The market's positive momentum was supported by a favorable ratio of advancing to declining stocks; at the NYSE, advancers led decliners by a 5-to-2 margin, and by a 3-to-2 margin at the Nasdaq.

Sector and Stocks Performance

Many stocks like Equinix and NRG Energy which surged by 11.5% and 7.8% respectively following their strong earnings reports and guidance helping to make them the top performers in S&P 500.

But we also have some losers, EPAM systems declined significant by 27% after their disappointing earnings results and guidance making it the worst performer in the S&P 500.

This decline also contributed to the underperformance of the S&P 500 information technology sector, which closed down by 0.3% despite gains in Apple and Microsoft. Additionally, NVIDIA (NVDA) and other semiconductor-related stocks saw declines following only in-line guidance from Arm Holdings (ARM, Financial).

Apart from the information technology sector, all other S&P 500 sectors posted gains, with real estate leading, followed by utilities and energy sectors.

Treasury Yield Lower By 30-Year Bond Auction

U.S. 10 Year treasury yield went down lower by 3 basis point, this is because of the weaker-than-expected jobless claims and strong demand at a $25 billion 30-year bond auction. This lower yield has help to provide additional support to the stock market.

On Friday (10 May), the key economic data to look at would be the preliminary University of Michigan Consumer Sentiment and the Treasury Budget for April. I would expect there should be some movement to the treasury yield.

Oil, Gas, Gold and Silver Report Increase

On the commodities side, crude oil, natural gas, gold, silver, and copper all recorded price increases. Based on my forecast, we could be seeing Gold going higher for another week before it moves back to current level.

This might be a chance to invest in $SPDR Gold Shares(GLD)$ ETF.

Stocks To Watch

$Marathon Digital Holdings Inc(MARA)$ reported first-quarter earnings that significantly exceeded Wall Street expectations, driven by favorable accounting changes for digital assets. The company announced a new hash rate target for 2024, aiming to double its capacity, which boosted its stock despite a slight revenue miss. Meanwhile, the broader cryptocurrency market saw gains as Bitcoin reclaimed the $65,000 level.

The demand is back and with the first-quarter earnings exceed market expectations, we should be seeing investors sentiment and interest back to investing in MARA, and we could see that MACD is forming a crossover soon.

$Meta Platforms, Inc.(META)$ continued its upward trajectory, marking seven consecutive sessions of gains. The company's stock has doubled over the past year, outperforming the broader market significantly, attributed to its robust profitability and momentum.

MACD is showing a upward movement, but we need demand to come back on the buying side. Good news is that the selling strength is decreasing.

$SoundHound AI Inc(SOUN)$ beat first-quarter earnings expectations and reported a substantial year-over-year revenue increase. Despite this, the company's stock experienced a dip, influenced by broader market sentiments and recent analyst downgrades.

I guess market have been selling SOUN, but with the first-quarter earnings expectations beaten, and MACD in upward movement, we could see buying strength coming back.

Summary

Market is looking to recover from selling, I would think it is near the end of selling. This positive momentum should continue into next week.

I would expect there would still be some profit taking, but this might create a chance to buy the dip in some of the earnings stocks.

Appreciate if you could share your thoughts in the comment section whether you think we are seeing market sentiment recovering, do take note of the VIX which suggest some complacency.

Read my other article for more information: S&P 500 Still Pausing -> More Short-Term Uncertainty, Complacency Detected

@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.