Thursday Market Recap

Market Overview

• Bulls and Bears at a stalemate today
• Market started red, went green, then closed in red
• Powell's statements yesterday weren't enough to sustain rally
• Markets unable to close above 200-day EMA
• Large options expiry tomorrow; direction uncertain

Key Company Earnings

Micron

• Positive post-earnings: up 2.23% after hours
• Earnings highlights:
  • EPS increased by 99.13%
  • Revenue beat by 2%
  • Gross margins slightly missed
• Strong AI memory chip demand driving growth
  • Focus on HBM chips for data centers
  • Expected growth in DRAM and NAND demand
• Challenges:
  • Inventory issues in consumer segment
  • Impact of tariffs uncertain
  • Significant capital investment in new facilities

Nike

• Stock down 5% in after-hours
• Issues faced:
  • Lack of innovation
  • Inventory buildup
  • Shift from wholesale to direct-consumer
• Earnings highlights:
  • EPS beat by 79%
  • Revenue beat by 2.27%
• Regional performance:
  • North America: down 4%
  • China: down 17.7%
• Current outlook:
  • Sales expected to drop double digits
  • Inventory clearance and consumer confidence issues

Technical Analysis

Major Indexes

• SPY and Qs: unable to close above 200-day EMA
• Mixed performance across sectors
• Utilities and Energy performed well
• Basic Materials and Industrials lagged
• Swing trades and options strategies discussed

Sector Analysis

• Financials (XLF): strong bounce
• Healthcare (XLV): potential short opportunity
• Semiconductors: bounce inadequate, potential for further downside

Bond and Commodities

• Bond yields showing potential rollover
• Gold remains strong; looking for higher low

Cryptocurrencies

• Bitcoin down 3.36%, struggling with resistance

Big Tech Performance

• Meta, Microsoft, Google, and Amazon facing resistance
• AMD performing well, considered a good buy
• Apple and Tesla facing valuation and resistance challenges

Conclusion

• Markets are volatile with mixed signals
• Technical indicators suggest caution
• Swing trades and options strategies to navigate current market conditions

This summary provides a concise overview of key points discussed in the presentation, focusing on market dynamics, specific company earnings, and technical analysis insights.