Here is a quick recap of Markets for the Week of February 2nd, 2024 and what we are watching this week 👨‍🏫

Last week was a busy week of news and blockbuster earnings results. Ultimately, the S&P 500 and Dow Jones Industrial Average closed at fresh all-time highs on Friday as the major indices all logged gains, except the Russell 2000.

The underperformance of the small cap index was related to weakness in regional bank stocks after New York Community Bank $NYCB reported that its provision for credit losses in the fourth quarter totaled $552 million compared to a $62 million for the three months ended September 2023. The increase, was primarily attributable to higher net charge-offs, weakness in the office sector and potential repricing risk in the multi-family portfolio.

Was this an isolated incident or are the Regional Banks hinting something?

Here are the key points from last week:

• FOMC rate decision - The committee voted unanimously to leave the target range for the fed funds rate unchanged at 5.25-5.50%. Fed Chair Powell spoke specifically about the possibility of a March rate cut, saying "I don't think it is likely that the Committee will reach a level of confidence by the time of the March meeting to identify March as the time to do that (cut rates), but that is to be seen."

• Recalibration of rate cut expectations - following more strong economic data. January Employment Situation Report featured a big upside surprise in payroll growth accompanied by a larger than expected increase in average hourly earnings.

• Mega Cap Earnings report - Alphabet (GOOG) -6.7% decline, Microsoft (MSFT) +1.8%, Apple (AAPL) -3.4%, Amazon (AMZN) +8%, and Meta Platforms (META) +20.5% for the week after reporting earnings.

$SPY:  S&P 500 continued its trend of weekly new highs last week on its way to 500. Mega caps did their part when it came to earnings so now it’s up to the laggers - growth and value names.

Click the chart below for a quick video explaining the Fed’s rate decision and what levels to look for in the next couple of weeks.

Have your shopping list ready because a 5-10% pull back will create wealth for investors!

I do a weekly Markets analysis every Monday during “Office Hours” 8:30pm EST via zoom for the Ceni Capital Community I will be speaking about the companies reporting earnings his week and the stocks I am watching.

If you are interested in making your money work for you by getting our swing trade alerts ahead of time, reply back or comment “Swing Trade alerts” below for more information.

$ONMD: was a high risk play we traded last week for +30% gain in 2 days. Company announced news on Monday and traded very strong volume compared to its average. It had continuation 2 and 3 days later trading to our $2 price target but couldn’t hold over it.

$TGT: Our Target swing tagged our next price target at $145 for +10.5% gain from our $131.58 entry. Chart remains strong and on its way to $150-$160.

Learn to make your money work for you, rather than you chasing it. 

Watchlist 👨‍🏫

$PLTR: Palantir Technologies is reporting earnings on Monday after the close. Wall St is looking for EPS .08 per share and quarterly revenue of $602.4 million. The stock has been trading sideways after its big rally in May 2023.

$SNAP: Snapchat is never a disappointment with BIG earnings movement the last couple of quarters, is reporting on Tuesday. Wall St is looking for EPS .07 per share representing a y/y decline of 50% and revenue to be $1.39 billion, showing a 6.69% escalation compared to the year-ago.

The chart still needs a lot of work but over $18 sets up a +22% move.

$UBER: Uber our swing from $30 has had an incredible run since April 2023 up +122%; is reporting earnings on Wednesday. Uber has been a successful growth name story dominating its sector but is it time for it to cool off some and begin pulling back?

Wall St is projecting earnings of .15 per share, representing a decline of 48.3% year over year. Revenues are projected to reach $9.75 billion, increasing 13.2% from the same quarter last year.

$PYPL: After a disappointing AI event a couple of weeks back can PayPal surprise with earnings on Wednesday and finally begin to write its turnaround story?

Wall Street is projecting earnings of $1.36 per share, reflecting an increase of 9.7% compared to the same period last year. Revenues are forecasted to be $7.88 billion, representing a year-over-year increase of 6.8%.

$PINS: Pinterest is another growth name reporting earnings on Thursday. After Meta’s impressive earnings last week, investors will look to see if Pinterest is keeping up with the times.

Wall St. is expecting an EPS of $0.51, indicating a 75.86% growth compared to the equivalent quarter last year and revenue of $988.62 million, up 12.7% from the year-ago period.

If you are interested in getting our swing trade alerts ahead of time, reply back or comment Swing Trades below for more information.

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