Semiconductors begin to pull back HARD: Weekly Buzz
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Weekly Buzz
Friday saw a major pullback bloodbath for top stocks, but generally, the market traded evenly from green to red overall. The market opened with most equities in the green, but by the afternoon, a pullback in AI stock prices hit tech stocks hard. $NVIDIA(NVDA.US$ fell 10% Friday by 4 pm, the largest one-day decline since March 2020.
With preliminary closing figures, the $Nasdaq Composite Index(.IXIC.US$ fell 2.05%, and the $S&P 500 Index fell 0.88%. The $Dow Jones Industrial Average climbed about 0.56%. Half of Nasdaq's 100 stocks were below their 100-day moving average, Bloomberg reported.
Recent earnings held up the Dow, like the $American Express(AXP.US$ report this morning that beat expectations, while Nvidia, Super Micro Computer, and Netflix helped pull the Nasdaq and S&P lower. For the week, the S&P fell 3%, the Dow traded flat, and the Nasdaq fell 5.5%.
Friday, the $U.S. 10-Year Treasury Notes Yield(US10Y.BD$ climbed to 4.62, and the $U.S. 2-Year Treasury Notes Yield(US2Y.BD$ climbed to 4.98. For the week, the 10-Year climbed .3% in yield, while the 2-year climbed 0.22%.
Thursday, weekly initial jobless claims stayed at the same level as last week, at about 212k. Federal Reserve New York President John Williams spoke in the morning and said interest rates were in a "good place," and there was no rush to lower them.
He said raising them would not be his next choice either, but rather keeping them in place, and eventually, they must come down. The comments come after many Fed comments, including the official Beige Book of economic qualitative data from the Fed's twelve districts.
Fed's Powel Tuesday warned rates would have to stay in place until the Fed was sure of the results. He said, "we will know more next year." His comments added to the uneasiness that neither bank nor semiconductor stock earnings could quell. Thursday $Netflix(NFLX.US$ results also led to a drop in internet content services.
Next week, investors can expect macroeconomic data that may guide the market. The PMI will be released on Tuesday, Q1 GDP updates will be released on Thursday, and the PCE, the Fed's favorite inflation indicator, will be released on Friday.
Anyway, let's dive into the weekly buzzing stock list of this week:
$Tesla(TSLA.US$ closed at its lowest level in 11 months Friday after CEO Elon Musk sent an email to employees Monday unveiling a move to lay off 10% of the firm's workforce, citing the company's need to reduce costs and increase productivity, according to The Wall Street Journal. "As part of the effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally," he wrote.
@104630476 any chance it will recover to 200+ in the next year or two?
$NVIDIA(NVDA.US$ fell 8% Friday by 3 pm, a major one-day pullback that brought the stock about a 14% fall in eight sessions. It is the largest one-day decline for the stock since Dec. 2022. The hot AI the sector pulled down the entire $Nasdaq Composite Index(.IXIC.US$. The sector drop began Tuesday after ASML posted a billion less net income than in the previous quarter. TSMC also gave a lighter expectation of this year's semiconductor demand.
@Ganar Poco: Blood Bath I've been waiting for this....5 months of gradual pump, but it just took a week to flush it down.
$Marathon Digital(MARA.US$, $Riot Platforms(RIOT.US$ and other crypto-mining stocks rallied Friday on rising bitcoin prices amid the cryptocurrency's imminent "halving" event -- although small-cap player $Bit Origin(BTOG.US$ bucked the trend and fell some 18%.
@Forexonolog: This Friday marks another halving event for Bitcoin!
$Taiwan Semiconductor(TSM.US$ on Thursday posted an increase in its profits for the first time in three quarters, as it gave a more cautious outlook for the broader industry. TSMC, which builds 61% of semiconductors, reported a 16.5% increase in its first quarter sales to NT$592.64 billion ($18.9 billion). The firm released a cautious forward-looking estimate for the rest of the year, that hurt the industry as a whole.
@104985595: luckily i sell it n get profit, no more to hold this stock
Shares of WiSA Technologies Inc. were among the biggest decliners listed on the Nasdaq Thursday, but that registered as only a minor pullback following a fivefold rocket ride over the previous two sessions. The wireless sound technology company's stock had blasted 248.6% higher on Tuesday and ran up 51.6% on Wednesday, for a total two-day gain of 428.6%, after the company announced licensing agreements. That surge came after the stock closed on Monday at a record low of $1.75. On Thursday, the stock dropped 26.6% in morning trading, enough to make it the fourth-biggest Nasdaq decliner, as the company took advantage of the rally to raise $750,000 through share sales.
@PaulG: Wireless multi-channel audio will be everywhere.
Shares of $AMC Entertainment(AMC.US$ were rising for four days straight by Friday, though a reason for the rally is unclear. On April 9, CEO Adam Aron offered some insight into the state of the company.
"Personally, I think it's inconceivable that AMC would have to restructure like Regal Cinemas did and file for Chapter 11," he told The Hollywood Reporter. "One of the things I'm very proud of is that going into the pandemic, AMC was in very strong position."
@CEO of Apes: Proof that amc is going to the moon
Shares of Truth Social's parent are rising this week. The stock, which trades under the ticker DJT, is still well below its peak from late last month. It's fallen some 46% in April through yesterday's close. It was up about 3% in recent trading.
On Thursday, Trump Media Chief Executive Devin Nunes sent a letter to Nasdaq CEO Adena Friedman asking her to help prevent illegal naked short selling and to make sure brokers disclose their short positions.
@Shroomie : Nice.. buying puts in June expiry.
Nio and other Chinese EV stocks traded near 52 week lows this week. Nio is currently priced at $3.7, a significant drop from its 52-week high of $16.18. NIO has recently unveiled the 2024 ET5 sedan and ES7 SUV at the Beijing International Automotive Exhibition. This signals its commitment to advancing manufacturing.
Analysts, with an average price target of $5.4, foresee a 37.11% upside for the stock in 2024. This is based on recent ratings from Macquarie, Barclays and UBS.
@Mr Dumb Money: is my bad habit. i know it’s bad for me but i really like the company
$Advanced Micro Devices(AMD.US$ said Tuesday that it has launched new processors to expand its commercial mobile and desktop artificial intelligence personal computer portfolio. The company said its new products are the Ryzen PRO 8040 Series processors built for business laptops and mobile workstations and the Ryzen PRO 8000 Series processors for desktops. Friday, the stock fell within the tanking semiconductor sector, down 5%.
@10baggerbamm: everything's in free fall there's no support in here the next stops 123 for AMD
Monday, data showed Apple saw its share of the global smartphone market fall almost 10% in the first quarter of 2024, in a shift that saw Samsung re-take the lead as the world's top smartphone seller. The world's top five smartphone companies -- Samsung, Apple, Xioami, Transsion, and Oppo -- sold a combined 289.4 million phones in the first quarter, up 7.8% year-on-year, according to data from International Data Corp.
@Mary Cole: how low will it go
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Weekly Topic
If AI stocks pull back hard, what are you looking at as an alternative investment?
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BelleWeather : AI stocks are in a pullback now. This presents a buying opportunity for several tickers for longterm holds. Of particular interest to me are $Taiwan Semiconductor (TSM.US)$ and $NVIDIA (NVDA.US)$ I think both are solid choices for a buy and hold base. It’s interesting to me that the drop is happening now. It’s certainly due to the factors discussed. But also, the semiconductor industry has traditionally been cyclical, and this is the time that supply gluts cause pullback. This has been averted because of AI, but the weakness in the other areas is, in fact, apparent now. AI isn’t going away, though. The longterm acceleration of the sector makes these prices attractive now.
I like trading options. I’m currently focusing on buying and writing contracts for the week of May 31, after Nvidia reports. I expect their ER to be positive, and that calls on Nvidia itself and SPY will be lucrative. So I am looking at SPY, and using short term contracts, both puts and calls.This is of course a gamble, and I could easily be incorrect, so strict capital allocation and risk management are key. I also am buying contracts for the fall, up until the election and LEAPS beyond that. SPY trends up in the longterm. And the market doesn’t like uncertainty, so I hope to profit from increased volatility leading up to the election.
mr_cashcow : Well the market is fearful because of the situation with Iran & Isreal so I guess a good place would be Gold related etfs or Oil related stocks
102362254 : For alternative investments, I’ll consider diversifying my investment portfolio by exploring cryptocurrencies or crypto ETFs as AI stocks are pulling back hard now. Despite their volatility, cryptocurrency present an opportunity for diversification. Whether it’s picking AI stocks, cryptocurrencies, or a mix of both, be sure to invest wisely.
151823938 102362254: Oil isn’t doing great even after all these events.
HuatEver : If AI stocks pull back hard, I plan to pívot towards exploring renewable energy stocks as an alternative investment avenue. The ongoing transition towards clean energy is gathering momentum globally, presenting promising prospects for companies engaged in solar, wind and other renewable energy sources. Investing in such companies not only aligns with sustainable practices but also offers the potential for long-term growth and profitability amidst evolving energy landscape.
HuatLady : As a long-term investor, I am not bothered by the pullback in AI stocks. What really matters is the resilience of my portfolio comprising of high-quality stocks, during this challenging period. It is crucial to stay focused on the long-term objectives and maintain confidence in the strength of the investments, regardless of short-term fluctuations in the market.
On Paris : TQVM
ko lok : Fasten the seat belt
PaulG : Wisa is definitely going to be a long term winner.
103492747 : GOI
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