To The Moon

Last week ending 09 August, we saw major indices close the volatile week with little change from last Friday (09 August 2024). Last week, the S&P 500 was fractionally lower, NASDAQ declined by 0.2%, DJIA was lower by 0.6% and Russell 2000 also dropped by 1.4%. Major Indices Gains Driven By Mega Cap Space The stock market exhibited mixed action to close out the week. The three major indices ultimately settled with gains, driven by gains in the mega cap space. S&P 500 closed slightly higher with +0.47%, NASDAQ settled with +0.51% gai and DJIA has a smaller gain of +0.13%. Small and mid-cap stocks lagged their larger peers. There was no notable US economic data on Friday. Note Yield 2-year Cross 4% 10-year note yield closed with 1 basis point lower to 3.936%, with 2-year note yield closed flat to 4.063%. This show that short term bonds were preferred as investors look forward to the Fed economic data measure, CPI and PPI. We could be seeing short term bonds to be favoured as investors is trying to comprehend the September rate cut possibility. S&P 500 Sectors - No Significant Winning Sector Only Materials sector ended in the red with -0.1%, the rest of 10 sectors closed between +0.02% to +0.97%. None of the sectors closed above 1%. This could signalled some cautious trading this week (12 August) with CPI and PPI economic data releases. Stocks To Watch Intel (INTC) faced a significant setback as Moody's Ratings downgraded its senior unsecured ratings to Baa1 from A3 and changed its outlook to negative from stable. The downgrade reflects expectations of weaker profitability over the next 12 to 18 months due to higher costs, unfavorable product mix, and continued market share losses. This comes on the heels of a shareholder lawsuit alleging Intel misled them regarding its foundry business. $Cisco(CSCO)$ is preparing for another round of layoffs, potentially affecting thousands of employees. This would be the second round of cutbacks this year, following a reduction of 4,000 employees in February. The layoffs are expected to be announced alongside Cisco's fiscal fourth-quarter results, where analysts anticipate earnings of $0.85 per share on $13.54 billion in revenue. From the technical, both MACD and KDJ are showing Cisco would go down further but with the announcement of layoffs, it would be important to understand how much could be saved, and what could this do to its future earnings. I would be watching the development of Cisco AI strategy as I believe they have to really innovate to reduce the expenses and increase their market share. $NVIDIA Corp(NVDA)$ saw a boost as Mizuho Securities increased its price target to $132 from $127.50 ahead of its fiscal second-quarter results. The upgrade is driven by strong demand for Nvidia's H100 and H200 GPUs and the upcoming Blackwell line, despite potential delays in mass production. Nvidia's shares were up 1.4% in premarket trading. For investors in NVDA, I would think that we need to look long term, as I hold some positions, because the overall business model is still strong because the demand for GPUs are still growing, because most of the current pre-trained models are still being run mainly or majority on GPUs. From the technical, MACD is showing a possible MACD bullish crossover, and with the KDJ making an upward movement trend, this looks like this current price can be considered as BUY target. I would be watching the price action closely to take some more position. Warner Bros. Discovery (WBD), Micron Technology (MU), and Advanced Micro Devices (AMD) are among the tech stocks down more than 20% from their 52-week highs but are seen as long-term winners by BofA Securities. Other notable names include CrowdStrike Holdings (CRWD), Jabil Inc. (JBL), and $Walt Disney(DIS)$, all of which have experienced significant declines but are expected to recover. I think DIS could stage a recovery soon as their theme park business are still getting good attendances, so we might be seeing investors confidence and sentiment come back. From the technical, though MACD is showing a downward trend, but KDJ seem to suggest that we could be seeing a potential upward movement in its stock price with strong investors buying strength. Summary We could be seeing some cautious trading on Monday (12 August) as investors await the economic data on 13-14 August, the data would be key for Fed to make decision on the rate movement. Mega cap might still be forming some strength but would not attract much buying, with some of the ecommerce earnings report coming up this week, we might see some interest in these stocks this week. Appreciate if you could share your thoughts in the comment section whether you think market would be trading cautiously with focus on china tech giants earnings and growth. @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.