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📣 The Daily Breakdown from Bret Kenwell @Bretman, eToro's investment and Options Analyst 🗓️ Monday's TLDR — August 26, 2024 📈 The $SPX500 is within 1% of its record highs. 📰 Earnings are still rolling, with Nvidia results in focus. 👀 Bitcoin is back above its 50-day and 200-day moving averages. ✳️ Weekly Outlook On Friday, Fed Chair Powell uttered the words investors had been hoping for: “The time has come for policy to adjust.” Stocks finished the week on a high note after Powell’s comments, as the Fed is prepared to start cutting rates at its next meeting in mid-September. Now, we enter the final trading week of August — and it’s going to be an exciting one. Monday and Tuesday are relatively quiet with a few notable earnings from companies like $BOX (Box Inc) and $JWN (Nordstrom Inc) but Wednesday is where the action picks up. That’s as $NVDA (NVIDIA Corporation) gears up to report its quarterly results. This name leads the semiconductor space and with its $3.2 trillion market cap, it’s become an influential holding for the market as a whole. We’ll also get earnings from $ANF (Abercrombie & Fitch Company), $CHWY (Chewy) and $KSS (Kohl's Corp) in the morning. Nvidia reports after the close on Wednesday, along with $CRWD (Crowdstrike Holdings), $CRM (Salesforce Inc), $AFRM (Affirm), $OKTA (Okta Inc), and others. On Thursday, retail earnings pick up the pace, with $BBY (Best Buy Co Inc), $DG.US (Dollar General Corporation), $AEO (American Eagle Outfitters Inc), $LULU (Lululemon Athletica Inc), $BIRK (Birkenstock Holding Ltd), $GAP (Gap, Inc.), and $ULTA (Ulta Beauty Inc) . We’ll also get the second revision for Q2 GDP growth. Lastly, on Friday we’ll get the PCE report. While rate cuts appear likely, the PCE report is always worth keeping on your radar as it’s the Fed’s preferred inflation gauge. ✳️ The setup — $BTC Bitcoin caught a big boost on Friday on the back of Fed Chair Powell’s commentary, rising more than 6%. The rally sent Bitcoin above its 50-day and 200-day moving averages, as investors quietly regain some bullish momentum. Since regaining these measures on Friday, Bitcoin continues to trade above them. While the recent momentum is a positive, BTC largely remains in a giant consolidation pattern marked by the blue lines below. Remember, this is healthy price action in the long term, even though it can be frustrating in the short term. (Chart below as of 7:30 a.m. ET on Aug. 26 2024. Source: eToro ProCharts, courtesy of TradingView.) If BTC can stay above the 50-day and 200-day moving averages, bulls will likely look for a push toward downtrend resistance near $69,000. A move above this level could have investors speculating whether a fresh breakout is on the horizon. However, if Bitcoin breaks back below these measures, it may continue chopping around below the $60,000 level. And if the selling pressure really picks up, a dip into the low- to mid-$50,000s range is possible. 👀 What Wall Street is watching 👀 $CAVA (CAVA Group Inc) Cava hit all-time highs on Friday after the firm delivered solid Q2 results. Earnings of 17 cents a share easily topped estimates of 12 cents a share, while revenue grew 35% year over year to $233.5 million, beating estimates of $219.5 million. $PDD (PDD Holdings Inc-ADR) Shares of PDD Holdings — otherwise known as Pinduoduo — are under pressure today, down over 15% after the firm delivered disappointing Q2 results. While earnings topped expectations, revenue of $13.36 billion missed estimates by more than $600 million, while management spoke of revenue pressure moving forward. $NSDQ100 The S&P 500 is within 1% of its all-time high, while the Nasdaq 100 is still down almost 5% from its highs. Bulls are hoping strong earnings from Nvidia can help return the Nasdaq back toward record highs. However, if Nvidia fails to reignite momentum, the S&P 500 could continue to outperform. 🔎 📚 Are your investments in line with today's news? Check your portfolio on eToro to make sure you aren't missing any opportunities. 🤑 If you want to upgrade your investing knowledge this summer, make sure to join our eToro Academy Learn & Earn Challenge, where you can take courses, pass quizzes, and earn up to $18 in rewards (T&Cs apply): www.etoro.com/en-us/academy/learn-and-earn/ Disclaimer: Please note that due to market volatility, some of the prices may have already been reached and scenarios played out. Content, research, tools, and stock symbols displayed are for educational purposes only and do not imply a recommendation or solicitation to engage in any specific investment strategy. All investments involve risk, losses may exceed the amount of principal invested, and past performance does not guarantee future results. Options involve risk and are not suitable for all investors. Please review the Characteristics and Risks of Standardized Options (etoro.tw/45gblCj) prior to engaging in options trading.