Market Positive Bias Reinforced By Buy-The-Dip Mentality
We saw 03 April 2024 trading session begin on a softer note before shifting to mostly positive price action at around 10pm last night. The release of a softer than expected ISM Services PMI for March has helped to catalyse this change.
Even though we saw mostly positive price action, it did not help the major indices to maintain their peak levels. We even saw some of the leading stocks pulling back before the close of the market.
Key Up and Down Movements
We saw Microsoft giving a decrease of $0.99 to close at $420.24, this is a negative 0.2% change, after we saw it was up by as much as 0.4% initially.
We saw $NVIDIA(NVDA.US$ not able to hold it earlier upside of 0.1%, ended the session at $889.64, which is a negative 0.6% change of $4.88.
The biggest decline we saw was Intel which went down by 8.2% losing $3.61 to close at $40.33. This happen after they announced a new financial reporting structure expected to peak operating losses in 2024. This has also caused Dow to experience slight pressure.
Market Sentiment and Stock Performance
The trading session ended with mixed results as we saw notable declines in Intel and Walt Disney. This declines overshadowed the positive market sentiment brought by Fed Chair comments.
NASDAQ did went higher with some uplift from tech sector, with $Alphabet-A(GOOGL.US$ after-hours gains following news Alphabet is considering implementing a paywall for some advanced search features. This move signifies Alphabet's strategy to integrate artificial intelligence into its business model without undermining its traditional search revenue, which remains a significant portion of its earnings. The introduction of premium features could mark a pivotal shift in how users interact with Google's search services.
Alphabet upside might continue this week as we can see that market is positive with the buying sentiment as well as MACD upwards trend. This enhanced search features should gather interests among its users, and we shall see a significant improvement in revenue from this.
Dow did experienced slight pressure from the significant drops in Intel, following its announcement of a wider annual loss in its foundry business, and Disney, which faced challenges in a pivotal shareholder vote amidst activist investor involvement.
We saw some significant development within the media sector, with Paramount Global stock price fluctuating after news of a tentative deal for its controlling shareholder, Shari Redstone, to sell her stake to David Ellison's Skydance Media.
News of this potential merger mean that the merger could significantly alter the landscape of the entertainment industry, highlighting the ongoing consolidation trend and the strategic maneuvers of companies to strengthen their market positions amidst increasing competition.
As for myself, I see this as an opportunity to look into Paramount, this might mark a new consolidation of the media entertainment industry and only the strongest survive. Paramount shall be one of them.
Potential From Financials and Steel With Maybe A Republican policy win
The potential beneficiaries of a Republican policy win outlined by a Goldman Sachs report highlight several industries and sectors that could see favorable outcomes. Looking among the listed companies, we could see that financials and steel sector would stand to gain from eased regulations and supportive policies.
This might also offer investors insights on how to align their portfolios with potential future policy directions.
Stock To Watch
I would think we need to be cautious following $Apple(AAPL.US$ move into the home robotics market, this might signal Apple exploring into new technological frontiers beyond its current product lineup. While i might welcome this move which reflect that Apple continuous search for the "next big thing" and its willingness to invest in innovative projects that could redefine consumer technology, but the possibility of Apple able to make it to reach commercialization stage remains to be seen.
If we look at how Apple is gathering support from investors, it looks like selling sentiment is stronger, and there are times when Apple is trying for an upside, but strength is weak seen from MACD.
I believe this downside trend might continue for a while unless Apple can show us a strong commercialization strategy for the new initiative they are embarking.
The Canadian cannabis industry witnessed a rally led by Aurora Cannabis and other licensed producers following the appointment of a new president for the Cannabis Council of Canada. This is an important development as it emphasises the ongoing efforts within the cannabis sector to navigate regulatory challenges and market dynamics, aiming for sustained growth and broader acceptance of cannabis products.
I am expecting other licensed producers to make some significant move following this development.
Summary
While we saw some challenges presented by Intel and Disney, but with the positive market sentiment brought by Fed Chair comments, I believe the bull cycle would continue.
The new gameplay would be to look for opportunity from key announcements and trends, earnings might shed some clues, but most importantly, always stay informed and focus on your trades.
Appreciate if you could share your thoughts in the comment section whether you think bull cycle would continue with positive market sentiment after Fed Chair comments?
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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