The Daily Breakdown sizes up markets at a critical time: Magnificent 7 earnings are due up, the Fed’s on deck, and a fresh inflation drops.
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What’s Happening?
What a busy week it’s set to be, with five of the Magnificent 7 names reporting earnings: Amazon, Apple, Meta, Microsoft, and Alphabet. They’ll report alongside a packed economic calendar, with the first look at Q1 GDP and the PCE inflation report — the Fed’s preferred inflation gauge — both due Thursday morning.
Oh, and there’s a Fed meeting on Wednesday afternoon. While consensus expectations call for the Fed to hold interest rates steady, commentary from Chair Powell will be key in gauging the central bank’s current outlook on the economy and inflation in the days and weeks ahead.
⚡ Crypto Corner
Bitcoin tagged $79,500 last week, its highest level since January 31. Now bulls are hoping BTC, which has rallied for four straight weeks, can build on its recent momentum. Speaking of momentum, Ondo and Aave were two of last week’s stronger performers, each gaining more than 6%.
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Chart of the Day — Semiconductors
We usually discuss the SMH ETF because it has higher trading volume and more assets under management, but the SOXX ETF has been on a real tear lately. Shares have climbed for 18 consecutive days and are up 49% in that stretch.
What Wall Street’s Watching
V
While mega-cap tech is stealing the spotlight, we’ll also get important earnings updates from consumer-facing companies like Visa and Starbucks on Tuesday after the close, Chipotle on Wednesday after the close, and Mastercard on Thursday before the open. Remember, a strong consumer helps power a strong economy: Roughly two-thirds of US GDP comes from personal consumption.
INTC
Shares of Intel exploded on Friday, surging more than 23% after the company reported better-than-expected quarterly results. It was the best-performing stock in the S&P 500 after beating earnings and revenue expectations and issuing guidance that topped Wall Street’s forecasts.The report also helped lift other semiconductor stocks, including Advanced Micro Devices (+13.9%) and Qualcomm (+11.1%). Check out the chart for INTC.
CHTR
On the flip side, Charter was the worst-performing stock in the S&P 500 on Friday, tumbling more than 25% and falling to a multi-year low in the process. It was a one-two punch: Charter reported a larger-than-expected drop in broadband subscribers and disappointing earnings per share. The results also weighed on Comcast, which fell almost 13% on the day. Dig into CHTR.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.