Market Overview
The market showcased resilience with a sharp rebound, driven by easing trade war concerns and strong earnings reports from Big Tech, notably Microsoft and Meta Platforms. The Dow Jones and S&P 500 achieved notable multi-day rallies, while the Nasdaq rose on AI optimism. However, recession fears linger as "recession" mentions surged in earnings calls, and some companies remain cautious about tariff impacts. Volatility persists, with the VIX still elevated. Investors are cautiously optimistic but wary of potential downturns in the months ahead.
For details: Barron's.
Earnings Recap
Microsoft (MSFT)
Following the earnings report, Microsoft stock has shown strong upward momentum. The current price of $435.28 is well above both the first resistance zone of $406.50 and the second resistance zone of $415.00. This indicates the stock has flipped both resistance zones and is trading significantly higher, reflecting positive investor sentiment and strong results. The chart link below illustrates the pre-earnings setup for further reference.
Chart link for MSFT (Pre-earnings setup)
Becton Dickinson (BDX)
Post-earnings, the stock has seen a substantial decline. With a current price of $168.78, it is now trading well below both the first support zone of $193.00 and the second support zone of $187.00. This signifies that Becton Dickinson has flipped both support zones and is trading in bearish territory, likely due to disappointing earnings or guidance. The chart link below shows the pre-earnings setup.
Chart link for BDX (Pre-earnings setup)
XYZ Corp (XYZ)
After its earnings release, XYZ Corp has faced sharp downward pressure. The current price of $46.53 is below both the first support zone of $54.00 and the second support zone of $51.25. This indicates the stock has flipped both support zones and is trading in a weaker range, suggesting poor market reception of the earnings report. The chart link below contains the pre-earnings setup for reference.
Chart link for XYZ (Pre-earnings setup)
Key Index Charts Recap
This week saw robust performances across equity indices: