The Daily Breakdown takes a closer look at software stocks, as well as the earnings reaction from Tesla. BTC and Near Protocol jump.
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What’s Happening?
The Nasdaq 100 (QQQ) has rallied in 14 of the past 16 sessions, gaining more than 17% over that stretch and breaking out to fresh record highs. Strength in the Magnificent 7 and a sharp rally in software stocks helped power the move, though both are showing signs of cooling Thursday morning.
Tesla is down about 3% following its quarterly results, while ServiceNow is off more than 10%. The ~$100 billion cloud software company beat on both earnings and revenue, but investors remain concerned about the potential disruptive impact of AI. That pressure is weighing on the broader software group, with many names down 4% to 5% and the IGV ETF falling nearly 3% after an eight-day winning streak pushed it to a two-month high.
Check out our Deep Dive on software stocks from Q1.
⚡ Crypto Corner
Bitcoin climbed as high as $79,500 on Wednesday, its highest level since January, helping lift the IBIT ETF to a multi-month high as well. Elsewhere, Near Protocol is quietly on pace for a second straight monthly gain, up more than 17% so far this month.
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The Setup — Eli Lilly
The chart above may look a bit busy, but it highlights Eli Lilly’s slow, steady pullback to its 200-day moving average. Along the way, the stock has carved out a series of lower highs — marked by the blue downtrend resistance line — while prior resistance near $975 has turned into support, a dynamic we highlighted in our Technical Analysis Boot Camp earlier this year.
Now bulls are looking for support in the $875 to $900 zone to hold, which could set the stage for a rebound back toward current resistance. A breakout above that level could open the door to a larger rally toward $1,000 or higher. If support gives way, though, the setup could point to further downside.
What Wall Street’s Watching
TSLA
Tesla delivered a better-than-expected first quarter, beating on earnings, revenue, gross margin and free cash flow. However, shares are down this morning as investors digest management’s plan for higher spending — now anticipating about $25 billion in capex this year. As eToro’s Josh Gilbert said, “The vision is moving forward, but the price tag of that vision keeps rising.” Dig into the fundamentals for TSLA.
LMT
Is the slide for Lockheed Martin set to continue? Shares are down about 3% in pre-market trading after earnings of $6.44 per share missed estimates of $6.69 and revenue of $18.02 billion missed expectations of $18.24 billion. LMT is riding a seven-day losing streak into Thursday and was down nearly 20% from its record highs. Analysts currently have a ~$680 price target on LMT.
INTC
Intel shares have been on fire, climbing more than 50% over the past few weeks and more than tripling from its summer lows. Now investors will be focused on the firm’s quarterly results, which will be delivered after the close on Thursday. Check out the chart for INTC.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.