The Daily Breakdown takes a closer look at AMD as it breaks out to record highs, then zooms in on Amazon, Apple and Stellar (XLM).
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What’s Happening?
We’re still early in earnings season, but the commentary has been constructive so far. Consider this from Wells Fargo CEO Charlie Scharf: “The financial health of consumers and businesses remains strong. Consumers are spending more than a year ago, which includes spending more on gas, but they haven’t slowed spending on everything else.”
The March retail sales report is due at 8:30 a.m. ET today and should offer another clue on the health of the consumer. In the US, personal consumption accounts for roughly two-thirds of GDP.
👀 S&P 500 Spotlight
After rallying more than 4% on Friday, Stanley Black & Decker followed up with another strong session on Monday, climbing 5.3% to lead the S&P 500. It was followed by Hewlett Packard Enterprise, which gained more than 4% to hit record highs and is riding a six-week win streak.
United Airlines and Intuitive Surgical report earnings tonight, while Boeing and AT&T are on deck tomorrow morning.
⚡ Crypto Corner
Stellar is one of this morning’s early leaders, up about 4% on the day and more than 8% on the week. XLM is trying to build on last week’s 10.9% rally and is now trading at a two-month high.
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Chart of the Day — Advanced Micro Devices
Tech has been on a winning streak, and so has Advanced Micro Devices. Before yesterday’s 1.3% dip, AMD shares had rallied for 13 straight sessions and gained more than 40% — a run that helped lift the stock to fresh all-time highs. Now bulls are looking for support above prior resistance near $260. If that level fails to hold, a larger pullback could follow.
Options
For options traders, calls or bull call spreads could be one way to speculate on support holding on a pullback. In this scenario, buyers of calls or call spreads limit their risk to the price paid for the calls or call spreads, while trying to capitalize on a bounce in the AMD. Conversely, investors who expect support to fail could speculate with puts or put spreads.
For those looking to learn more about options, consider visiting the eToro Academy.
What Wall Street’s Watching
AMZN
Amazon rose about 3% after hours after agreeing to invest up to $25 billion more in Anthropic, adding to the $8 billion it has already committed. Anthropic said it plans to spend more than $100 billion on AWS technology over the next decade, underscoring Amazon’s aggressive push into AI infrastructure. Dig into the fundamentals for AMZN.
AAPL
Apple said Tim Cook will step down as CEO on Sept. 1, with John Ternus set to take over while Cook becomes chairman. Ternus will also join Apple’s board. It’s the first CEO transition for Apple since Cook succeeded Steve Jobs in 2011. Shares are up about 38% over the past year as investors digest a rare leadership transition at a company whose market cap topped $4 trillion under Cook. Check out the chart for AAPL.
UNH
Shares of UnitedHealth Group are jumping this morning, up about 7% after better-than-expected quarterly results. Earnings per share of $7.23 beat expectations of $6.57, while revenue of $111.7 billion topped estimates for $109.6 billion. Further, management raised its 2026 profit outlook. Analysts’ current price target calls for about 14% upside in UNH.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.