Tech Stocks Show Mixed Results as Earnings Season Continues

ICARO Media Group
News
22/04/2024 22h43

In the early trading session today, Dow Jones futures, S&P 500 futures, and Nasdaq 100 futures remained steady, indicating a potentially quiet opening for the stock market. Notable tech giant Nvidia experienced a rebound, recovering from a 10% decline on Friday. This week's earnings reports will feature major players such as Microsoft, Boeing, Tesla, Meta Platforms, and Google's parent company Alphabet.

Late on Monday, Cadence Design Systems, Nucor, and Packaging Corporation of America released their earnings results. Unfortunately, Cadence Design Systems saw its stock price drop by almost 9%, while Nucor shares experienced a 3% decline in extended trading. On the other hand, Packaging Corporation of America's shares saw a slight uptick after the closing of the stock market. These earnings reports highlight the volatility and mixed results across different industries.

Investors are also keeping a close eye on upcoming economic data. The Bureau of Economic Analysis will release the first-quarter GDP data on Thursday, providing a broader perspective on the overall economic performance. The anticipated reading suggests a 2.1% growth rate, down from the previous quarter's 3.4% growth. Additionally, the core Personal Consumption Expenditures (PCE) price index, which acts as a primary inflation gauge for the Federal Reserve, will also be reported. Insight into personal spending and outlays for March are expected on Friday.

Meanwhile, Monday's trading session showcased a positive trend, with the Dow Jones Industrial Average climbing 0.7% and the S&P 500 rallying 0.9%. The tech-heavy Nasdaq composite outperformed, advancing by 1.1%. Among the top performers were Apple and Microsoft, both ending the day 0.5% higher.

Alphabet, Dexcom, On Holding, Tradeweb Markets, and American Express are among the companies capturing attention in today's stock market. Alphabet has surpassed a crucial buy point, trading above $153.78 in a consolidation pattern that saw a 2.2% surge on Monday. Dexcom, though falling below its flat-base entry, remains above its key 50-day line, which indicates potential support for the stock's future prospects. On Holding, a retail leader, experienced a drop below its 50-day line last Friday, and despite a 1.1% gain on Monday, it has yet to regain that level. Tradeweb continues to struggle below its 50-day line, but it is building a flat base with a buy point set at $108.04. Investors are eagerly awaiting a solid retake of that level, seeing it as an indicator of a potential breakout.

As oil prices dipped and the 10-year U.S. Treasury yield ticked lower to 4.61% on Monday, attentions are now focused on the stock market's correction and how to navigate within it. Investors are advised to consult IBD's The Big Picture column for a comprehensive understanding of the market's outlook. IBD's resources, including the MarketDiem newsletter and various stock lists like IBD 50, Big Cap 20, and Stocks Near A Buy Zone, are invaluable tools for identifying potential investment opportunities.

Overall, tech stocks are demonstrating mixed results as earnings season progresses. The market will be closely watching the upcoming earnings reports, economic data releases, and the ongoing correction to gauge the future course of action.

Note: The information provided in this article is based on the context provided by the user and does not reflect real-time market conditions.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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