The Daily Breakdown takes a closer look at stock markets as a ceasefire in the Middle East helps calm investors’ nerves.
Before we dive in, let’s make sure you’re set to receive The Daily Breakdown each morning. To keep getting our daily insights, all you need to do is log in to your eToro account.
Tuesday’s TLDR
- Consumer Confidence on tap
- Ceasefire ignites stocks
- 3M Co. goes for a breakout
What’s Happening?
Yesterday ended up being a solid session for the bulls, but it was a messy tape until the afternoon.
The S&P 500 was up 0.7% in early trading, then down 0.4% for the session before spiking higher into the close. With the rally, the SPY ETF ended higher by 1% and closed right near $600. Now it’s climbing higher again on news of a ceasefire between Iran and Israel.
The news has US stocks climbing — with the SPY and QQQ ETFs higher by about another 1% this morning — European equities are rising and oil prices are falling, while Bitcoin enjoyed solid overnight gains.
With today’s rally, US stocks will again be within a stone’s throw of all-time highs. Investors might wonder if the markets have enough gas in the tank to drive to new record highs, especially if the headlines begin to cool.
As for today, 10 a.m. ET is in focus.
That’s when the consumer confidence report will be released. After five straight months of decline, the report has started to rebound. Let’s see if it can gain more altitude this time around. At the same time, Fed Chair Powell will head to Capitol Hill to testify before the House Financial Services Committee and the Senate Banking Committee about the Fed’s monetary policy.
Want to receive these insights straight to your inbox?
The Setup — 3M Co.
Like most stocks, it’s been a bumpy year for 3M Co — which has the fitting ticker symbol of “MMM.”
After a tough 2024, investors are looking forward as 2025 stabilizes with mid-single-digit earnings growth expectations. Analysts then expect near double-digit earnings growth in 2026 and 2027.
From a technical perspective, the stock has struggled with the $155 area, recently testing this zone last month. After a controlled pullback to the low-$140s, MMM broke out over downtrend resistance yesterday (the blue line on the chart above).
From here, bulls hope to see the stock charge back up toward $155 resistance, with longer term investors hoping for an eventual breakout over this area, too. On the downside, they want to see shares stay above $140 and the 200-day moving average. A break of this area could usher in more selling pressure.
Options
For some investors, options could be one alternative to speculate on MMM. Remember, the risk for options buyers is tied to the premium paid for the option — and losing the premium is the full risk.
Bulls can utilize calls or call spreads to speculate on further upside, while bears can use puts or put spreads to speculate on the gains fizzling out and MMM rolling over.
For those looking to learn more about options, consider visiting the eToro Academy.
What Wall Street Is Watching
UBER
Shares of Uber are rallying this morning as the company’s partnership with Waymo is now operating in Atlanta. Waymo is already present in Austin, Los Angeles, Phoenix, and San Francisco. Bulls are cheering the news, which comes one day after Tesla launched its service in Austin.
Hims & Hers plunged over 34% on Monday after Novo Nordisk announced it would end its partnership to offer the blockbuster weight-loss drug Wegovy through Hims’ telehealth platform. Check out the charts for HIMS.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.