There are a slew of earnings scheduled to be released this week, including Alphabet, Meta Platforms, Tesla, Intel. Below is a list of the major earnings on the schedule:
Key earnings this week:
- Tuesday: After the close :Tesla, Visa, Texas Instruments
- Wednesday: Boeing, AT&T, General Dynamics, Boston Scientific. After the close: Meta Platforms, IBM, Ford, Chipotle, ServiceNow, Lamb Research
- Thursday: American Airlines, Caterpillar, Southwest, Bristol-Myers Squibb. After close Microsoft, Alphabet, Intel, Western Digital, T-Mobile, Gilead.
- Friday: Exxon Mobil, Chevron, Colgate-Palmolive.
Today, stocks are up for the second consecutive day helped by lower yields on a softer-less inflationary economy. S&P global manufacturing and service data came in weaker than expectations. The Richmond Fed manufacturing data was also on the weak/contractionary side. Yields are lower with the 5-year yield down around -3.7 basis points and the 10-year yield down -3.3 basis points.
The combination has stocks moving higher for the second consecutive day. The S&P index is up 1.01%. The NASDAQ is up 1.44%.
Technically, looking at the daily chart of the S&P index above, it fell below the 50% midpoint of the 2024 trading range on Friday at 4973.48. The price on Friday closed below that level at 4953.56 (Barash), but fell short of the 100-day MA (blue line on the chart above) currently at 4944.56.
Yesterday the price rebounded, taking some of the pressure off of the downside in the process. The price bottomed for the day at 4969.40 before rebounding and closing above the 50% retracement level at 5010.59.
Today the momentum has continued with the price moving back above the broken 38.2% retracement at 5042.24. That level is now a close risk for buyers looking for more upside. On the top side, the 50-day moving average comes in at 5119.28 and is the next upside target. The price is still a good distance away from that level with a high price today at only 5068.82.
Looking at the NASDAQ and on the daily chart below, its price low did fall below its 100 day moving average last week. That was the first time since November 10 (see blue line at 15515.03). The price also fell below the 61.8% tracing of the 2024 trading range at 15264.98.
Yesterday, the price bottomed right near that retracement level before moving higher. Today the price has moved above its 50% midpoint of the 2024 trading range at 15508.22, and also the 100-day moving average of 15515.01.
Moving back above those two key technical levels has shifted the short-term bias to the upside. Traders looking for more upside would now not want to see the price move back below each of those technical levels (down to 15508.22). The next upside time comes at the broken 38.2 at 15751.45. Above that is the 50-day moving average at 16055.26.
Need this say, the earnings this week will be key for both these broader indices. Buyers are trying to take that control at least in the short term, but they will need to hold technicals support to keep the upside probing in play.
