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Sizing Up the S&P 500
- Index holds recent channel, weekly low from 2/5
- Wilder’s RSI remains near overbought
- Prices hold rising 10-day MA
- Index rose in 14 of 15 weeks when this week began
- Fed minutes on 2/21 are potential risk
Key News
- Nvidia (NVDA) in focus before earnings next Wednesday 2/21 (post market)
- Citi raises estimates and price target ($850), says shorter lead times could result in more sales
- Mizuho raises price target from $625 to $875 based on AI leadership
- Susquehanna raises price target from $625 to $850. Sees “long-tail” of companies needing to invest this year.
- NVDA passes GOOGL in market cap, vies with AMZN
- Uber Technologies (UBER) rises on buyback
- Robinhood (HOOD) beats on strong monthly users. Is bull market awareness spreading?
- Lyft (LYFT) rallies on profitability improvement
- CNH Industrial (CNHI) reveals price increases across machinery
- January core CPI +0.4% vs +0.3% estimate, led by auto insurance, shelter and medical care
- EIA crude oil inventories +12mln barrels vs 2.6mln est.
- Gene Munster: Nasdaq could double or triple in next 2-3 years on AI growth.
- Jonathan Krinsky of BTIG: Momentum could shift from large-cap growth to Russell 2000 small caps this week.
- HSBC upgrades HPQ before earnings on 2/28
- Earnings overview:
- LSEG (former Thomson Financial): Q4 earnings +9% vs forecast of 4.7% when year began
- FactSet: S&P 500 P/E ratio over 20x (1st time since February 2022) as investors reward earnings beats more than average
Sector Watch
- Chips, retailers, biotechnology, small caps outperforming in the last week.
- Solar energy bouncing after major decline
- Crypto-related stocks rally: RIOT, CLSK, MARA, COIN
- Gold miners, energy lag
Mover of the Week: Viking Therapeutics
- Broke 2023 high after earnings beat on 2/7
- Stifel raises price target from $30 to $35, citing metabolic disease treatments
- VKTX +148% since 12/1, when Roche acquired rival Carmot
- Potential treatments in obesity and non-alcoholic steatohepatitis (NASH), non-alcoholic liver disease
- Both conditions have potential large global markets
Signals Scan
- Huntington Bancshares (HBAN) holds 50-day MA, August high
- Bank of America (BAC), Wells Fargo (WFC) holding 50-day MA
- AT&T (T), Verizon Communications (VZ) near bottom of Keltner channels
- Kraft Heinz (KHC) falls under 200-day MA
Upcoming Events
- Thu 2/15:
- Earnings: AMAT, COIN, ROKU, DKNG, DASH
- Fri 2/16: PPI, housing starts/building permits
- Mon 2/19: Presidents’ Day
- Tues 2/20:
- Earnings: WMT, PANW, HD
- Wed 2/21: Fed minutes
- Earnings: NVDA, ETSY, VRT
- Thu 2/22: Oil inventories, jobless claims
Using the Platform
- “MA X Days Since” custom indicator displays the candles since two moving averages crossed
- Faster MA above slower MA shown with positive outputs.
- Works in RadarScreen, Scanner and Charts
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