Markets erased the week’s early losses yesterday and closed the day at their highs.
The Nasdaq outperformed, logging a gain of 2.6%. The other three major indexes posted solid gains near 1.5% each.
Three sectors led, gaining more than 2% each.
- Consumer Discretionary (XLY)
- Technology (XLK)
- Communications (XLC)
The lone red sector was Energy (XLE) which fell by almost 3%. It all comes down to supply and demand…
- OPEC+ agreed to a small production increase … Supply +
- US inventory report signaled slowing demand … Demand –
The price of crude settled near $90 per barrel. It’s lowest level since the Russia/Ukraine war began nearly six months ago.
Moderna’s (MRNA) stock rose 16% after a blowout earnings report.
- Vaccine sales obliterated expectations
- Company profits fell 19%, but that was expected
- The COVID vaccine maker appears to be in great shape with $18 billion in cash on hand and a growing team.
Shares of Robinhood (HOOD) climbed 12% after announcing lousy earnings and a major shake-up.
- The stock broker is set to cut 23% of its staff.
- Active users are down by 34% from the previous year.
- Revenue fell 44%.
- Investors appear to believe the worst is behind them.
Tesla’s (TSLA^) stock split decision looms.
- The annual shareholder meeting is today
- Investors will have their say on a number of topics, including the proposed 3-to-1 stock split.
- Expect that announcement and others after the market closes this evening.
- The share price has risen 35% over the past month.
Bitcoin Boss Booted
Shares of MicroStrategy (MSTR) exploded nearly 13% higher after it announced its founder and CEO, Michael Saylor, would be stepping down.
Image from Twitter
- The 57-year-old entrepreneur led the company’s efforts to buy billions of dollars worth of Bitcoin.^
- The Wall Street Journal described the company as “a bitcoin-holding vehicle with a cash-generating software business.”
- The stock price is down 76% from its peak in early 2021
- To Saylor’s credit, the share price is 154% higher than before its bitcoin purchases
- In a tweet, Saylor said, “In my next job, I intend to focus more on #Bitcoin.”
This morning Bitcoin is trading near $23,000.
The Nasdaq broke out above a critical resistance level yesterday. We had previously highlighted this level on Monday.
QQQ Daily Candles – Chart via thinkorswim
RSI levels are beginning to signal the market is overbought.
But the bulls still have the upper hand…
- The put-to-call ratio is neutral.
- The VIX is continuing its downward side
Labor, labor, labor.
The first of two key reports drops this morning:
- The latest unemployment filing numbers will be released at 8:30.
- July’s jobs report is scheduled for Friday pre-market.
*QRTEB is on watch
*AEMD is on watch
TH has resistance at $14
PGY has support at $25
SIGA has support at $18
CELH has resistance at $110
ALDX has support at $5.50
RYTM has support at $15
VUZI has support at $8
CBAY has support at $3.50
INVZ has resistance at $5
EDU has support at $25
ARRY has support at $16
TCRT has resistance at $1.50
GSAT has support at $1.50