Markets kicked off the week reacting to Trump’s new tariffs, but a last-minute 30-day delay for Canada and Mexico sparked a sharp rebound. Meanwhile, the 10% tariffs on China took effect on February 4th, prompting retaliation and adding to trade tensions. Despite the noise, investor focus quickly shifted to major tech earnings from GOOG, AMZN, and PLTR. As the week progressed, price action mimicked that of last week with steady gains until Friday, with a dip in the markets caused by a jump in the UMich 1-Year inflation expectations. In other news:
- Tesla Hiring Spree
- Trump-China Trade War
- Palantir Earnings Surge
- Strategy’s Bitcoin Plan
- Master Market Trends
With tech earnings season winding down, traders now turn to next week’s CPI and PPI reports for insight into the Fed’s next move. Will inflation data reinforce the market’s resilience, or will we face a shift in momentum? Let’s dive into the charts.
Weekly Analysis
SPY (SPDR S&P 500)
This week, the SPY ETF closed marginally lower at $600.77 (-0.16%). After three weeks of tight price action paired with a squeeze, next week’s CPI and PPI data could be the catalyst for the next major move. This index will have to gain the top of the ascending triangle to push higher, while the rising trendline from the August 5th lows could act as a critical support level if sellers take control.
QQQ (Invesco QQQ Trust)
The QQQ ETF posted a modest gain this week, closing at $522.92 (+0.12%), as it continues to inch higher within a well-defined ascending triangle. Monday’s bounce off the lower trendline reaffirmed key support, keeping bullish momentum intact. Now in the third week of its squeeze, QQQ is nearing the triangle’s apex, potentially setting up for a decisive move on next week’s CPI announcement.
IWM (iShares Russell 2000)
The IWM ETF lagged behind its index peers this week, closing lower at $226.00 (-0.21%) and testing the lower boundary of its ascending channel, a key level since October 2023. Now, in a prolonged squeeze that has turned negative for the first time since last summer, the stage is set for a decisive move. Will this extended squeeze lead to a breakdown, or will buyers dig in here at support?
Earnings
Notable Results
AMZN (Amazon.com)
- EPS: $1.86 vs $1.48 est
- REV: $187.80B vs $187.30B est
GOOG (Alphabet)
- EPS: $2.15 vs $2.12 est
- REV: $96.47B vs $96.65B est
PLTR (Palantir)
- EPS: $0.14 vs $0.11 est
- REV: $827.52M vs $775.91M est
AMD (Advanced Micro Devices)
- EPS: $1.09 vs $1.08 est
- REV: $7.66B vs $7.53B est
CMG (Chipotle)
- EPS: $0.25 vs $0.24 est
- REV: $2.85B vs $2.85B est
DIS (Walt Disney)
- EPS: $1.76 vs $1.45 est
- REV: $24.70B vs $24.62B est
SPOT (Spotify)
- EPS: $1.88 vs $2.06 est
- REV: $4.53B vs $4.15B est
- EPS: $3.41 vs $2.96 est
- REV: $11.67B vs $10.93B est
UBER (Uber Technologies)
- EPS: $0.23 vs $0.48 est
- REV: $11.96B vs $11.77B est
- EPS: $1.19 vs $1.12 est
- REV: $8.37B vs $8.26B est
PEP (Pepsico)
- EPS: $1.96 vs $1.94 est
- REV: $27.78B vs $27.89B est
MRK (Merck & Company)
- EPS: $1.72 vs $1.62 est
- REV: $15.62B vs $15.49B est
- EPS: $0.63 vs $0.47 est
- REV: $17.76B vs $17.40B est
- EPS: $0.23 vs $0.22 est
- REV: $11.64B vs $11.17B est
What’s Happening Now
PLTR (Palantir)
Palantir reported earnings this week, posting $828M in revenue (+36% YoY) and EPS of $0.14 (+75% YoY), fueled by 52% U.S. growth and a 64% surge in commercial contracts. The stock rallied 44% this week, pushing its market cap to $264B, now among the top 50 global companies by market cap. However, trading at 330x earnings and 92x revenue has analysts split—buy and sell targets range from $125+ to as low as $40, as much as 65% below current levels. Can AI momentum sustain these valuations?
ABBV (AbbVie)
AbbVie beat Q4 expectations with $15.1B in revenue ($14.83B est.) and EPS of $2.16 ($2.11 est.), as Skyrizi and Rinvoq sales soared, offsetting Humira’s 49% decline. As a result, the company raised its 2027 forecast for both drugs to $31B+, up from the previous $ 27B estimate. Up 5% on the week, ABBV’s momentum could continue as its best two-week seasonal stretch since the 2013 Abbott spin-off begins on Monday.
Patrick Whitesell has spent $303 million gobbling up TKO shares since December, doubling down as Endeavor strengthens its majority stake. His buying spree coincides with UFC’s newfound ties to the White House through Dana White, a longtime Trump ally. With WWE and UFC under the TKO umbrella, Whitesell’s aggressive accumulation signals confidence—whether in the company’s future or the potential of unseen political tailwinds.
Believe it or not, this is just a fraction of what happened in the markets this week. For a full run down delivered straight to your inbox every weekend, sign up for The Official Trendspider Newsletter!
Market Update Into September 7th: Inflation Data Incoming