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 Fed announces QT taper
- DEA considers marijuana rescheduling
- AAPL makes history
- Berkshire’s annual shareholder meeting kicks off
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.
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.
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.
Earnings
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
XYZ (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?
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%.
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.
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 14th: Rate Hike Incoming?