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05/03/2024 |

Market Update Into May 6th: The 50 SMA’s Got Something To Say

It was another wild week in the markets, with FOMC and a pivotal earnings announcement from Apple helping to push the indexes higher, but are they about to run out of steam? The charts tell a bit of a mixed story, showing prices finding resistance at key moving averages but momentum just starting to turn potentially bullish again. We’ll dig into the details below, but first, some key moments from the week:

The bulls took home the trophy this week, but this bounce still has a bit of work to do to prove itself. Let’s dig into the charts and see what they have to say.

Weekly Analysis

SPY (SPDR S&P 500)

Despite being the worst performer of the group this week, the SPY ETF continued its rally to close at $511.29 (+0.60%). The price is now stalled at the 50-day SMA while the MACD histogram is going positive for the first time since the all-time high.

This is a daily chart of the SPY ETF.

QQQ (Invesco QQQ Trust)

Much like the SPY, the QQQ ETF also added to last week’s gains but struggled with its 50-day SMA to close the week at $435.48 (+1.04%). Interestingly, this is the first bullish MACD cross we’ve seen below the zero line since the October lows.

This is a daily chart of the QQQ ETF.

IWM (iShares Russell 2000)

The IWM ETF looks the most constructive this week, managing to trade above its 50-day SMA and closing the week at $201.90 (+1.77%). The bullish MACD cross seen at the beginning of the week continues to take shape while the price was nearly able to fill the April gap.

This is a daily chart of the IWM ETF.

Earnings

This is an image of the most important earnings data from this week.

Notable Results

SOFI (SoFi)

  • EPS: $0.02  vs  $0.01 est 
  • SALES: $580.648M  vs  $555.997M est

ON (ON Semiconductor)

  • EPS: $1.08  vs  $1.04 est
  • SALES: $1.863B  vs  $1.851B est

MSTR (MicroStrategy)

  • EPS: $(8.26)  vs  $0.34 est
  • SALES: $115.200M  vs  $121.725M est

PYPL (PayPal)

  • EPS: $1.08  vs  $1.22 est
  • SALES: $7.70B  vs  $7.51B est

LLY (Eli Lily)

  • EPS: $2.58  vs  $2.46 est
  • SALES: $8.768B  vs  $8.922B est

KO (Coca-Cola)

  • EPS: $0.72  vs  $0.70 est
  • SALES: $11.300B  vs  $11.010B est

MCD (McDonald’s)

  • EPS: $2.70  vs  $2.72 est 
  • SALES: $6.17B  vs  $6.16B est

AMZN (Amazon)

  • EPS: $0.98  vs  $0.82 est 
  • SALES: $143.30B  vs  $142.50B est

SBUX (Starbucks)

  • EPS: $0.68  vs  $0.79 est
  • SALES: $8.600B  vs  $9.129B est

SMCI (Super Micro Computer)

  • EPS: $6.65  vs  $5.95 est 
  • SALES: $3.85B  vs  $4.10B est

AMD (Advanced Micro Devices)

  • EPS: $0.62  vs  $0.61 est 
  • SALES: $5.47B  vs  $5.46B est

MA (Mastercard)

  • EPS: $3.31  vs  $3.24 est 
  • SALES: $6.30B  vs  $6.34B est

PFE (Pfizer)

  • EPS: $0.82  vs  $0.54 est
  • SALES: $14.90B  vs  $14.20B est

CVS (CVS Health Corporation)

  • EPS: $1.31  vs  $1.69 est 
  • SALES: $88.437B  vs  $89.209B est

QCOM (Qualcomm)

  • EPS: $2.44  vs  $2.32 est
  • SALES: $9.40B  vs  $9.34B est

DASH (DoorDash)

  • EPS: $(0.06)  vs  $(0.04) est 
  • SALES: $2.513B  vs  $2.453B est

EBAY (eBay)

  • EPS: $1.25  vs  $1.20 est
  • SALES: $2.60B  vs  $2.53B est

MRNA (Moderna)

  • EPS: $(3.07)  vs  $(3.55) est
  • SALES: $167.00M  vs  $97.50M est

COP (ConocoPhillips)

  • EPS: $2.03  vs  $2.04 est 
  • SALES: $14.476B  vs  $15.047B est

SHEL (Shell)

  • EPADS: $2.40  vs  $1.86 est 
  • SALES: $72.478B  vs  $82.039B est

COIN (Coinbase)

  • EPS: $4.40  vs  $1.07 est
  • SALES: $1.64B  vs  $1.32B est

BKNG (Booking Holdings)

  • EPS: $20.39  vs  $14.06 est
  • SALES: $4.42B  vs  $4.25B est

AMGN (Amgen)

  • EPS: $3.96  vs  $3.87 est 
  • SALES: $7.45B  vs  $7.44B est

SQ (Block)

  • EPS: $0.74  vs  $0.22 est 
  • SALES: $5.957B  vs  $5.821B est

DKNG (DraftKings)

  • EPS: $(0.30)  vs  $(0.28) est 
  • SALES: $1.18B  vs  $1.12B est

AAPL (Apple)

  • EPS: $1.53  vs  $1.50 est 
  • SALES: $90.80B  vs  $90.01B est

What’s Happening Now

AAPL (Apple)

Apple announced the largest buyback program ever by a public company, a massive $110B approved by the board with a 4% dividend raise as a kicker. Despite the double beat, is the aggressive repurchase program a band-aid to cover up for slowing growth?

This is an image of historical Apple earnings data.

BTC (Bitcoin)

Election year seasonality dating back to 2011 shows that Bitcoin has deployed the same strategy every May: “up only.” Historical data shows Bitcoin has never fallen in May during an election year and returns on average +8.4%.

This is an image of Bitcoin seasonality.

QCOM (Qualcomm)

Qualcomm climbed over 8% last week after surpassing expectations with strong Q2 results and an optimistic forecast for Q3. Analysts joined the cheer with fresh price targets as high as $206/share, representing a 15% upside from Friday’s close.

This is an image of qualcomm analyst ratings.

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.