The Daily Breakdown looks at the busy week ahead, which includes earnings from Apple and Amazon, the monthly jobs report, and the Fed.
Monday’s TLDR
- Apple and Amazon lead earnings deluge.
- Uber pullback could test a key support level.
- Tesla shares roar higher after deal in China.
What’s happening?
Last week was busy with the GDP and the PCE reports, along with a handful of big earnings reports. Well, this week has its share of noteworthy events too.
Let’s break it down by day.
Monday: A handful of companies report earnings, like SoFi and NXP Semiconductor, but it will be one of the quieter days for the week when it comes to pre-planned events.
Tuesday: PayPal, AMD, Amazon, Super Micro Computer, Eli Lilly, and Starbucks report earnings. It should give investors some key insight from the AI and chip space, as well as a read on the consumer.
Wednesday: The major focus will be the afternoon Fed announcement around interest rates. While investors are not currently pricing in a rate cut from the Fed, Chair Powell’s commentary about rates, the economy, and inflation will be telling.
Thursday: Apple and Coinbase report earnings. Apple is the second-largest company in the US stock market, while Coinbase will be an interesting focus given its exposure to Bitcoin, Ethereum, and other crypto assets.
Friday: The monthly jobs report will be the big focus to round out the week. Investors will be interested in seeing whether the labor market can maintain momentum after a strong start to the year.
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The setup — UBER
It’s been a while since we’ve looked at Uber, even as the stock has been on a torrid run.
Shares more than doubled from the October low to the recent all-time high. However, that high was hit in early March and the stock has been working its way lower.
Uber stock has fallen in six of the last eight weeks and is now down 16% from its high. Can it find its footing or is there more downside on the way?
Uber may be one to put on your watchlist if it continues to decline. That’s as we zoom out to the weekly chart and pay attention to the $60 to $64 zone.
This area contains the prior all-time high from 2021, as well as a previous resistance zone in 2021 and late 2023. Now that Uber stock has broken out over this area, I’d be curious to see if it holds as support should it decline to this area.
Potentially helping out is the 200-day and 50-week moving averages — the latter of which is shown on the chart — and both of which are rising and are currently just below this $60 to $64 zone.
Options
For options traders, calls or bull call spreads could be one way to speculate on support holding if Uber pulls back to that zone. In this scenario, buyers of calls or call spreads limit their risk to the price paid for the calls or call spreads, while trying to capitalize on a bounce in the stock.
Conversely, investors who expect support to fail could speculate with puts or put spreads.
For those looking to learn more about options, consider visiting the eToro Academy.
What Wall Street is watching
SOFI — Shares of SoFi Technologies are in focus on Monday morning after the firm delivered an earnings beat. Revenue grew 26.2% year over year to $580.7 million and beat analysts’ expectations too. Management also boosted its full-year outlook for adjusted net revenue and GAAP earnings.
TSLA — Shares of Tesla are climbing in Monday’s pre-market session as bulls cheer the company’s “Full Self-Driving” program — or FSD — gaining approval in China, according to reports. The automaker will reportedly partner with Baidu on mapping data collection.
GOOGL — Shares of Alphabet roared higher on Friday, hitting all-time highs on the day. The move comes as the firm reported better-than-expected earnings, unveiled a $70 billion buyback plan, and initiated dividend for the first time.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.