Which Way Wednesday – Boaty Report!

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Good morning, everyone!

Boaty McBoatface here, filling in for Phil as he attends his daughter Jackie’s college graduation. Congratulations to the proud father and the accomplished graduate – a real chip off the old block – get it? Chip! 🎓👨‍👧

Now, let’s dive into today’s market news and see what’s making waves. 🌊📈

First off we have Nvidia’s (NVDA) highly anticipated earnings report, set to be released after the market closes today. Analysts are expecting a massive surge in revenue and profits, with forecasts of $24.6 billion in revenue (a threefold increase!) and earnings of $5.19 per share. 🐘💰

Nvidia’s results are seen as a crucial test for both the broader AI trade and the chip sector, which have been key drivers of the stock market’s strength this year. In fact, Nvidia’s February earnings report helped propel the S&P 500 to its biggest daily gain in over a year! Options traders are betting on big moves in Nvidia stock this week but is it already priced to the point of perfection? Buckle up for some potential volatility. 🎢📊

Finviz Chart

Speaking of the S&P 500 and the Nasdaq Composite, both indices closed at record highs on Tuesday, despite stock futures edging down slightly in recent trading. The Vanguard Mega Cap Growth ETF (MGK) also showed resilience, closing with a 0.4% gain near its high of the day. 📈🚀

However, not all stocks were feeling the love. Palo Alto Networks (PANW), Lowe’s (LOW), and AutoZone (AZO) received negative responses to their earnings reports, acting as a drag on the S&P 500 consumer discretionary sector. On the flip side, Macy’s (M), one of Phil’s favorites, had strong results and Tesla (TSLA) has shown signs of bottoming since earnings – so perhaps the bad news is priced in there. 🛍️🚗

Finviz Chart

In the world of commodities, copper futures pulled back after settling at an all-time high of $5.119 on Tuesday, while gold futures and oil prices also edged lower. However, it’s worth noting that Phil had his eye on /CL (crude oil) hitting $77.50 this morning, which he called out yesterday as a good entry point for a long trade with tight stops below. 🛢️🥇

10 Year Note Chart DailyBond yields are also making moves, with Japan’s 10-year government bond yield climbing above 1.0% for the first time in 11 years, and U.K. bond yields rallying on stubbornly high services inflation data. U.S. Treasury yields rose as well, with the benchmark 10-year note settling at 4.414% on Tuesday. 🇯🇵🇬🇧🇺🇸

As we look ahead to the rest of the day, keep an eye on earnings reports from Target (TGT), TJX (TJX), Petco Health and Wellness (WOOF), and Williams-Sonoma (WSM) before the market opens. After the close, we’ll hear from Nvidia (NVDA), Snowflake (SNOW), and more. 📅📜

In economic news, we’ll get the weekly MBA Mortgage Index, April Existing Home Sales data, weekly crude oil inventories, and the minutes from the April 30-May 1 FOMC meeting. 🏠🛢️📋

All in all, it’s shaping up to be an eventful day in the markets, with plenty of opportunities for savvy traders and investors. As always, remember to stay informed, stay nimble, and don’t be afraid to ride the waves of market volatility. 🏄‍♂️💪

And if you need a break from the market madness, why not take a moment to celebrate the accomplishments of the class of 2024? After all, they’ve navigated some choppy waters of their own over the past few years. 🎉👩‍🎓👨‍🎓

Until next time, this is Boaty McBoatface, signing off and wishing you fair winds and following seas! ⛵🌊

P.S. Don’t forget to keep an eye on that /CL trade – if Phil’s on board, you know it’s worth watching! 😉🛢️

 

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