S&P 500 (SPX) Nasdaq (QQQ) Day Ahead: Dow pumps, Nasdaq slumps and S&P slumbers


Update: The markets continue to argue among themselves as tech stocks suffer while industrial and energy stocks lead the major indices higher. Economic data is light this week and earnings season is over so things may be rangebound unless some catalyst can be found. 

Sectors: Industrials (XLI) +0.9%, Financial (XLF) +0.7%. Tech (XLK) -1.5%.

Selected stocks: AMC +3%, GME -7%, TSLA -4%, AAPL -1.6%, AMZN -2%, GOOGL -2.5%, FB -4%, COIN +3%. 

The Nasdaq sell-off has brought it to critical support at the bottom trendline identified below. 13,510 is the level. The Nasdaq is currently just below this so the close will be important for future direction.

Here is what you need to know on Monday, May 10:

Friday's jobs report still looms large over markets this morning with the dollar suffering a pasting at the hands of a resurgent sterling. Yields continue to shrug it off and slumber while the VIX does give a little wobble. The weekend saw many commentators grapple with the optics post the disappointing number. Most investment banks focused on the strength of GDP growth and considered the jobs disappointment a blip while others saw the opportunity to attack President Biden's supposedly too generous unemployment benefits.

Either way, equity markets are still underpinned with huge inflows, unlimited money supply, stimulus and zero rates for infinity. This definitely ends well! Energy stocks remain strong as the ransomware attack on one of the largest pipelines in the US sees WTI and gasoline futures jump. 

ndx

The Nasdaq put down an interesting session on Friday. It started the rally as interest-rate sensitive, growth stocks stand to gain the most from lower rates for longer. The Nasdaq stalled at the intersection of the 9 and 21-day moving averages. The S&P and Dow pushed on to more records so the Nasdaq remains the laggard. Or is it the canary in the coal mine? 13,510 is key support, being the lower trendline and 50-day moving average.

European markets are all lower with the Dax down 0.1%, FTSE down 0.2% and EuroStoxx down 0.3%.

US futures are positive with the Dow and S&P both ahead by 0.3%. The Nasdaq is lower after leading the way on Friday and is down 0.3%.

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Wall Street top news

US major oil pipeline remains closed three days after a suspected ransomware attack.

UK to announce a further easing of restriction on Monday as covid cases continue to fall.

Marriott (MAR) beats earnings estimates, shares down 1% as revenue disappoints.

US Foods (USFD) beat estimates on EPS and revenue, shares up 1% premarket.

BioNTech (BNTX) says no need to adapt covid vaccine to new variants as it announces strong earnings. Shares up 8% premarket.

Tyson Foods (TSN) smashes earnings with EPS at $1.34 versus $1.12 estimate.

Astra Zeneca (AZN) may skip emergency use approval for its covid vaccine and go straight to full approval according to the Wall Street Journal.

Intel (INTC) UK competition authority is to examine Intels' sale of its flash memory division.

Eli Lilly (LLY) signs agreement with Indian generic drugmakers for Lilly arthritis drug to help in the treatment of covid.

Simon Property Group (SPG) and Authentic Brands team up to buy retailer Eddie Bauer.

Astra Zeneca (AZN) and JNJ: Norway should not use either vaccine due to rare side effects according to a Norwegian government commission.

Ford (F) recalling 661,000Explorer SUVs at the request of US regulators, Reuters reports.

Pfizer (PFE): EU signs a new agreement for 1.8 billion doses of its covid vaccine for 2021-2023.

Ups and Downs

Alphabet (GOOGL): Citi downgrades.

Facebook (FB): Citi downgrades.

Truist Financial (TFC): Raymond James downgrades.

Intel (INTC): Atlantic Equities downgrades.

Cardinal Health (CAH): Baird downgrades.

LEAF: BTIG dwongrades.

Oracle (ORCL): Barclays downgrades.

Solar Edge (SEDG): Bank of America upgrades.

Live Nation (LYV): Jefferies upgrades.

LYFT: Daiwa upgrades.

Moneygram (MGI): JPMorgan upgrades.

Eagle Materials (EXP): Jefferies upgrades.

iHeartMedia (IHRT): JPMorgan upgrades.

Apple (AAPL): Deutsche Bank reiterates buy rating.

DraftKings (DKNG): Cowen reiterates buy rating.

Economic releases

 

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