To The Moon

The S&P 500 (+0.4%) and Nasdaq Composite (+1.3%) closed near their highs of the day, driven by gains in mega cap and semiconductor-related names. S&P 500 0.4% gains was due to the tech rebound helping the benchmark index notch its first daily gain since its record close a week ago.

Even with these gains, the market sentiment was feeling negative overall, with declining counters exceeding advancing ones by roughly 3-to-2 at both the NYSE and Nasdaq.

Dow Jones Industrial Average was down by -0.76$ but the downside moves were relatively modest, because it was supported by NVIDIA (NVDA) which rallied after recent losses, and other mega cap names.

Carnival Unexpected Profit Boost Cruise Stocks

After $Carnival(CCL)$ posted an unexpected quarterly profit, boosted by higher ticket prices and increased onboard spending, the shares of other cruise operators also soared.

Carnival (CCL) was the top performer in the S&P 500

Carnival (CCL) was the top performer in the S&P 500, rising 8.7% after reporting better-than-expected earnings and revenue, along with above-consensus guidance. Other cruise line stocks also closed higher in sympathy:

Norwegian Cruise Line (NCLH) was up by +5.1%, followed by Royal Caribbean (RCL) which was up by +4.0%.

Pool (POOL) showed the largest decline among S&P 500 stocks, falling 8.0% after cutting FY24 guidance.

S&P 500 Information Technology Biggest Winner

Eight of the S&P 500 sectors logged declines. However, the heavily-weighted information technology (+1.8%) and communication services (+1.9%) sectors led the outperformers, supported by gains in mega cap components.

Yield Did Not Move Much To Economic Data Released

The market was also reacting to the Conference Board's Consumer Confidence Index for June, which slipped to 100.4 from 101.3 in May as expectations for future income weakened.

April FHFA Housing Price Index came in at 0.2% with previous reported at 0.1%, April S&P Case-Shiller Home Price Index was 7.2% with consensus at 6.9%, and previous was 7.5%.

The key takeaway from the report is that expectations for future income weakened, which may detract from discretionary spending activity.

Treasuries did not move much in response to the data, settling little changed from yesterday. The 2-yr note yield was unchanged at 4.73%, and the 10-yr note yield fell one basis point to 4.24%. The Treasury market was also digesting today's $69 billion 2-yr note sale, which met solid demand.

Stocks To Watch

$FedEx(FDX)$ saw a significant post-market surge on Tuesday after exceeding consensus estimates with its fourth-quarter earnings report and delivering revenue guidance that surpassed expectations. The shipping giant reported a 0.9% year-over-year revenue increase to $22.1 billion for the quarter. The earnings per share (EPS) was $5.41, beating the consensus of $5.37 and last year's $4.94. Operating income also rose to $1.87 billion, surpassing both the consensus and last year's figures.

However, the operating margin rate dropped to 7.0% from 8.5% a year ago. The company's Ground segment showed improved results due to reduced structural costs and increased yield, while the Freight segment benefited from higher yield and effective cost management.

Actually last week before its earnings, we are already seeing Fedex having a good upside movement in MACD and also KDJ, though MACD did not indicate a bullish crossover.

But KDJ did show promising upside movement after showing a BUY signal on 18 June 2024.

Google (GOOG, GOOGL) announced an earlier date for its Pixel reveal event, moving it from October to August 13. The "Made by Google" event will be streamed live and is expected to showcase the latest updates across Android, Gemini, and the Pixel device portfolio. This year's event comes ahead of Apple's (AAPL) anticipated iPhone 16 release in September.

$Micron Technology(MU)$ is anticipated to beat Wall Street estimates when it reports third-quarter results on Wednesday, driven by increased AI exposure and higher DRAM pricing. Analysts expect the company to post EPS of $0.53 on $6.67 billion in revenue, reflecting a 77.9% increase. Micron has been gaining market share in high bandwidth memory chips, crucial for AI applications, and has started volume production for Nvidia's GPUs.

Though Micron might be gaining market share, but movement on its stock price indicate that it is experiencing a consolidation beginning as it has traded sideway for last 3 sessions, and from MACD and KDJ, it is showing a downward moving trend.

I would suggest that if you are looking to buy into Micron, do hold on until we saw its earnings results today (26 June).

ZoomInfo Technologies (ZI) saw a nearly 5% rise amid vague takeover speculation. Reports suggest that an unidentified suitor has shown interest in the software and data company, which has a market cap of $4.4 billion. The speculation follows a recent downgrade by Piper Sandler due to weak growth in small and midsize businesses.

Summary

Mega-cap and semiconductors stocks rebound has help NASDAQ and the S&P 500, but we need to be cautious whether this rebound would last, or it could be a temporary exit from the correction.

I personally feel that we need to watch the price action when trading the mega cap stocks, as for the semiconductors, we would need to see if the sector can continue its rally with Micron earnings coming after trading hours on 26 June 2024.

Appreciate if you could share your thoughts in the comment section whether you think mega cap and semiconductors sector rebound would continue?

@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.