Tech Titans Take a Breather: Market Leaders Pause as New Players Step Up
By:JJ Kinahan
Yesterday, prominent tech stocks paused, allowing other firms to lead. Meta (META) and Nvidia (NVDA) dipped slightly, yet the market stayed positive. The S&P 500 rose 0.23%, and the Nasdaq Composite saw marginal gains.
We're halfway through earnings season. FactSet indicates a 1.9% year-over-year earnings increase. Recent reports and upcoming forecasts shape this trend.
Chipotle (CMG) exceeded expectations with strong demand, indicating a 2% premarket increase. Uber (UBER) beat earnings projections, though premarket trading saw a 1.5% decline. Fortinet (FTNT) surpassed expectations, with a 9% premarket rise. Conversely, CVS Health (CVS) revised its 2024 outlook due to rising costs, with a modest premarket increase.
Target's (TGT) premarket surge of 2% is fueled by reports of a potential subscription service akin to Amazon Prime or Walmart+. This strategic move could enhance competitiveness.
In the sports realm, ESPN, a Disney (DIS) unit, Fox (FOX), and Warner Bros. Discovery (WBD) are exploring a new sports-focused streaming service, excluding NBC and CBS. Details are forthcoming but worth monitoring.
Chinese markets surged 3.2% after a dismal 2024 start, yet Alibaba's (BABA) earnings miss dampens gains, with premarket shares down 4%.
Volatility declines as stocks stabilize, with the Volatility Index (VIX) dropping 0.5% premarket. Disney's 3% Tuesday gain precedes its earnings report, where insights into the sports streaming venture are anticipated.
In summary, market dynamics change amidst earnings reports and strategic ventures. Investors should maintain their focus on long-term goals.
JJ Kinahan is CEO of IG North America—which includes tastylive, tastytrade and IG's FX Business. Kinahan traded for 21 years at the Chicago Board Options Exchange. He serves on the CBOE Advisory Board and the SIFMA Options Committee. @thejjkinahan
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