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Sizing Up the S&P 500
- S&P 500 sitting between 200-day and 50-day MAs
- MACD inching higher
- Weak U.S. dollar, lower yields are potentially positive for growth stocks
- VIX above/below 20 could be a potential signal for S&P 500
Key Economic News
- February existing home sales beat estimates, biggest gain since July 2020
- Crude oil inventories unexpectedly rise
- FOMC hikes 25bp as expected, forecasts one more hike this year.
- Futures show 50-75bp of expected hikes have disappeared in the last month.
- Tesla (TSLA) upgraded to investment grade by Moody’s. Reports suggest strong sales in Europe and China.
- Q1 deliveries due in early April.
- Nvidia (NVDA) gains as GTC conference highlights artificial intelligence (AI)
- BofA raises price target from $275 to $310
- Bernstein sees accelerated-computing power opportunity in data centers.
- Barclays: NVDA is “king of generative AI,” which is the “biggest secular tailwind in Tech.”
- Meta Platforms (META): KeyBanc upgrades to overweight amid cost cuts, stable advertising.
- GameStop (GME) jumps after cost cuts drive surprise profit.
- FedEx (FDX) price target raises by Argus, Bernstein after cost cuts boost profits..
- Amazon.com (AMZN) tests $100 after cutting 9,000 jobs.
- Krispy Kreme (DNUT) gaining on streak of positive news:
- Earnings beat on price hikes (2/15)
- McDonald’s (MCD) widens donut collaboration (2/27)
- Truist raises to Buy on volume growth potential (3/22)
Cost-cuts pay off: META, GME, FDX, AMZN
Leaders & Laggards
- Safe havens fall: REITs, utilities, consumer staples
- Gold miners rally as U.S. dollar weakens
- Growth continues to outperform: Software, semiconductors, Big Tech
- Apple (AAPL): “Golden cross”
- Adobe (ADBE): “Golden cross”
- Exact Sciences (EXAS) holds 50-day MA
- Tesla (TSLA): nearing potential MACD crossover
- McDonald’s (MCD) in tight channel above 200-day MA
- Ford Motor (F): potential bearish triangle forming sine August
Mover of the Week: Carvana
Carvana (CVNA) rallies on debt restructuring offer.
- Would term out $1 billion of notes at a discount, replacing with more flexible securities.
- Potential beneficiary of Fed pausing rate hikes.
- Short interest around 70% of float may fuel buying.
- Friday (3/24): Durable goods orders, Bullard speech
- Tuesday (3/28): Consumer confidence
- Micron Technology (MU) earnings in post market
- Friday (3/31): PCE inflation
Using the Platform
Platform tool of the week: Strategy back testing with multiple data inputs.
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