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Sizing Up the S&P 500
- S&P 500 pulls back to 50-day MA.
- Prices have retraced half their move off December lows.
- S&P 500 holding bottom of Keltner Channel.
- Potential for sideways movement as investors await more Fed news
Key Economic News:
- Fed minutes apparently confirm shift to slower rate hikes.
- Crude oil sliding as inventories build.
- Nvidia (NVDA) earnings, revenue beat. Gaming recovers, AI at “inflection point” amid “urgency to adopt AI strategies.”
- Walmart (WMT) earnings, revenue beat. Membership, grocery market share & e-commerce growing.
- Cautious guidance is consistent with the current negativity wave.
- Home Depot (HD) revenue misses. Comps fall as home-improvement slows.
- Deere (DE) earnings, revenue miss. Low inventories seen supporting demand.
Leaders & Laggards
- Most major sectors down in past week, but growth stocks and cybersecurity have relative strength.
- Precious metals crumble as U.S. dollar gains.
- Homebuilders, chipmakers pull back after rallying.
- Energy is the weakest sector in the last month.
- Broadcom (AVGO) pulls back to 50-day MA.
- Wells Fargo (WFC) holds bottom of Keltner channel.
- Cisco Systems (CSCO) pulls back to 8-day EMA after strong earnings.
- Walmart (WMT) 21-day EMA rising above 50-day MA.
- Occidental Petroleum (OXY) continues lower after “death cross.”
Mover of the Week: DraftKings
DraftKings (DKNG): jumps 34% in the last month.
- Earnings and revenue beat, users increase for sports-betting stock.
- Analysts including BTIG, Morgan Stanley, Piper Sandler issue positive notes. Focus is now on profitability.
- DKNG was a former SPAC / high-multiple growth stock that fell 85% between March 2021 and May 2022.
- August high of $21.45 is potentially important resistance.
- Friday, 2/24: PCE inflation
- Tuesday, 2/28: Consumer confidence
- Target (TGT) earnings in premarket.
- Wednesday, 3/1: ISM Manufacturing
- Lowe’s (LOW) earnings in premarket. Salesforce.com (CRM) earnings in postmarket.
- Thursday, 3/2: Initial jobless claims
- Best Buy (BBY) earnings in premarket. Costco (COST), Broadcom (AVGO) in postmarket.
Using the Platform
Platform tool of the week: Scanning for MA crosses
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