S&P 500 (SPX), Nasdaq (QQQ) Day Ahead: Kaplan shakes it up but bulls wake and buy the dip

Things were starting to turn ugly as the first hour of trading progressed and Kaplan spoke of at some stage thinking about thinking of ending the taper. VIX popped back above 20 and stocks wobbled. But the bulls came back in and everything is rosy again in Cinderalla stock land. The Fed has our back so we can just keep buying dips. If it ain't broke then don't try and fix it.

Sectors: Consumer Staples (XLP) +0.8%, Energy (XLE) -0.7% and Health (XLV) -0.7%.

Selected stocks: PLTR -4%, AMC +1.6%, CCIV -1.4%, RKT -15%, ETSY -13%, Kellog (K) +7%, UBER -7%, LYFT -6%, BUD +5%, GOLD +5%.

Here is what you need to know on Thursday, May 6:

Equity markets are again looking for direction but are unlikely to find it ahead of Friday's employment report. AMC might provide retail traders with some interest after the close as it releases Q1 results. President Biden gives pharma stocks a little wobble as he backs a plan to waive intellectual property rights to increase vaccine supply to poorer nations. Shares in Pfizer are down 3% in the premarket.

Bears continue to talk of a correction as it feels like the Nasdaq is collapsing after a few days of losses. To put things into context, the Dow closed at a new record high on Wednesday. Not exactly a bear market, but then as we keep saying the Fed has decided things never go down anymore and we all live in Cinderella stock land. It will all end in tears someday, but it may take a few years of further bubble growth.

The dollar loses some ground as risk on, risk off switches to on. Gold is targetting $1,800 and Bitcoin is at $57,700 now as the bulls return. Yields remain steady at 1.58% for the 10-year, and the VIX is back below 20. All in all, it is on: buy the dip, and let it rip.

See forex today

European markets are flat, the Dax is -0.1%, FTSE +0.1%, and EuroStoxx +0.1%.

US futures are also trading in a tight range, the Nasdaq is -0.1%, S&P -0.1%, and the Dow is +0.1%.

Wall Street top news

US Jobless claims 498k versus 538k forecast.

BoE Governor Bailey says the increase in inflation in 2021 will not continue. He fails to use the word transitory. 

BoE leaves rates unchanged, need we mention it.

Toyko stretches the state of emergency to May 31.

SEC Chairman to testify before House Financial Committee on short selling.

ETSY: warns of slower user growth, shares dump 9%.

Rocket (RKT) Posts worse than expected results, shares dump 13% premarket.

Pfizer (PFE) shares drop 3% premarket as President Biden backs IP waiver. 

Moderna (MRNA) down 8% premarket as Q1 revenue miss and Biden IP plans.

Kellogg (K) beats on earnings, up 4% premarket.

Paypal (PYPL) earnings beat estimates, shares up 3% premarket.

Peloton (PTON) recalls treadmills on Wednesday, down 3% again in today's premarket. Results after the close Thursday.

Viacom (VIAC) earnings beat shares up 2% premarket.

Cardinal Health (CAH) misses earnings estimates, shares drop 3% premarket.

Builders First Source (BLDR) results beat estimates, shares up 6% premarket.

Twilio (TWLO) beats on EPS but guidance disappoints, shares down 6% premarket.

Zynga (ZNGA) shares are up 6% premarket after raising earnings guidance.

Anheuser-Busch (BUD) results beat analyst expectations, shares up 5% premarket.

Ceridian Holdings (CDAY) results in line on EPS revenue beats, shares up 5% premarket.

Ambev (ABEV) beats on earnings, shares up 5% premarket.

Wayfair (W) beats on earnings, shares up 4% premarket.

PENN EPS and sales beat estimates, shares down 2% premarket.

Norwegian Cruise (NCLH) EPS loss ahead of estimates, but revenue missed, shares down 1% premarket.

Ups and downs

Restaurant Brands (QSR): Argus Research upgrades.

Alcon (ALC): Citigroup upgrades.

Zynga (ZNGA): Bank of America upgrades.

Peloton (PTON): Bank of America downgrades. Credit Suisse reiterates as outperform.

Pfizer (PFE): Mizuho downgrades.

DELL: Morgan Stanley raises price target.

Dine Brands (DIN): Raymond James, Wedbush and Keybanc all raise price target.

Hubspot (HUBS): BMO, Morgan Stanley, Piper Sandler, Raymond James and Needham all raise price target.

Neurocrine Bio (NBIX): Barclays upgrades, Morgan Stanley and SVB lower price target.

UBER Technologies (UBER): Morgan Stanley, MKM Partners, Susquehanna, Piper Sandler cut price target. JP Morgan and Deutsche raised price target.

Economic releases

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