To The Moon

We saw the market went on a normal consolidation interest which drives selling activity. This is after yesterday solid run for the major indices.

There was negative bias in trading session where downside moves were not extreme, leaving the S&P 500 1.67% off its all-time high. The equal-weighted S&P 500 declined only 0.3% on Thursday (22 Aug)

The S&P 500 was down -0.89%, NASDAQ also declined by -1.67%, DJIA went down -0.43%, and Russell 2000 was also down -1.0% closed near their lows of the day.

Goldman Sachs analysts released a list of top 50 long positions favored by fundamentally driven hedge funds. This list includes stocks like Amazon (AMZN) and Microsoft (MSFT), which are frequently found among the top 10 holdings of these investors. The basket has outperformed the S&P 500 year-to-date.

Thursday Economic Data Did Not Generate Big Response From Stocks

We have the slightly worse than expected initial jobless claims, preliminary manufacturing PMI data for August also was weaker than expected. Preliminary Services PMI data for August came in stronger than expected

Existing home sales for July was up 1.3% month-over-month but down 2.5% year-over-year, came in better than expected.

Fed Chair Powell's speech at the Jackson Hole Symposium

Friday's economic lineup is limited to the July New Home Sales report at 10:00 ET. Tomorrow's headline event is Fed Chair Powell's speech at the Jackson Hole Symposium.

S&P 500 Information Technology Sector Affected By Mega Caps Losses

Indices suffered outsized impact because of losses in mega caps and semiconductor-related shares. The PHLX Semiconductor Index (SOX) registered a 3.4% loss and the Vanguard Mega Cap Growth ETF (MGK) fell 1.5%.

This price action led the heavily-weighted information technology sector (-2.13%) to log the biggest decline among the S&P 500 sectors. The next worst performing sector was consumer discretionary (-1.87%).

The only sectors to close higher were real estate (+0.6%), financials (+0.56%), financials (+0.48%) and energy (+0.32%).

Note Yield Lower

The 10-year note yield was lower by 13 basis points to settled at 3.844% while 2-year note yield was also down 23 basis point to close at 3.993%.

Stocks To Watch

Uber Technologies (UBER) announced a multiyear strategic partnership with General Motors' (GM) Cruise to integrate autonomous vehicles into its ride-sharing platform. Starting next year, Uber will deploy Chevy Bolt-based autonomous vehicles for selected rides. This move highlights Uber's ongoing efforts to enhance its autonomous vehicle capabilities.

$Faraday Future Intelligent Electric Inc.(FFIE)$ surged 103% in afternoon trading, reversing a week's worth of decline. The spike in volume came as the company announced a launch event for its China-U.S. Automotive Bridge Strategy, scheduled for 19 September.

$Intuit(INTU)$ reported Q4 non-GAAP earnings per share of $1.99, beating expectations by $0.14. The company also posted revenue of $3.18 billion, a 17.3% year-over-year increase, driven by strong performance in its Small Business and Self-Employed Group, which saw a 20% revenue increase.

We should be seeing limited upside from INTU as shown by MACD, but KDJ is making decline down which should raise some concern whether INTU stock price could continue the upside.

I will be watching this stock closely as I would like to take a position.

$Peloton Interactive, Inc.(PTON)$ shares soared 41% as the company's fiscal Q4 results showed positive sales growth and progress towards profitability. Despite a decline in hardware sales and connected fitness subscriptions, investors focused on improved gross margins and favorable FY25 EBITDA projections.

From the technical, we could be seeing upside potential forming from MACD and KDJ, this is despite that there is a decline in hardware sales and connected fitness subscriptions, I am seeing investors confidence and interest growing for PTON.

Tesla (TSLA) lost another executive as Vaibhav Taneja stepped down, according to a LinkedIn post. Taneja, who was head of Tesla's finance operations, played a strategic role in factory construction and vehicle manufacturing. This departure leaves Laurie Shelby as the only senior female executive at Tesla.

Moderna (MRNA) and Pfizer (PFE), along with BioNTech (BNTX), received Emergency Use Authorization from the FDA for their new COVID-19 vaccines targeting the KP.2 variant. These vaccines are expected to be available in the coming days or weeks.

Summary

With Jackson Hole here, all focus would be on Fed Chair speech, I am expecting investors to remain cautious with some selling off to take profits. The consolidation should still continue, we might see a weak early session but might picked up in the afternoon.

This is the good time to consider buying some mega caps at some good price.

Appreciate if you could share your thoughts in the comment section whether you think market would trade cautiously with negative bias.

@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.