The first full week of April certainly came in like a lion, with the major benchmarks roaring to life and picking up several record highs on the way. The week began on a strong note, as traders pored over an upbeat round of jobs data, and bond yields eased, sending both the Dow and the S&P 500 to fresh closing highs. President Joe Biden's $2 trillion infrastructure plan was also a major point of focus this week, and while this proposal has been mostly well-received by investors, stocks took a breather on Tuesday, brushing off more strong jobs data. 

By Wednesday, the S&P 500 inched back toward another all-time peak, though the Dow and the Nasdaq saw another muted day of trading, while Wall Street eyed the Federal Open Market Committee's (FOMC) latest comments on the state of the economy. This muted trading was temporary, and markets charged back by Thursday's close. The S&P 500 extended its gains, and the Nasdaq notched a triple-digit win, brushing off disappointing employment numbers. Meanwhile, mortgage rates dropped for the first time in over a month, pressured by steadily retreating bond yields. By midday today, stocks are taking a breather, though all three indexes are on track for weekly wins. 

Stocks Seeing Analyst Love This Week 

Plenty of big names were being noticed by analysts this week, giving many a boost, including Honeywell (HON) which jumped to fresh highs following a deluge of bull notes. U.S. Bancorp (USB), on the other hand, was unable to capitalize on an upgrade from J.P. Morgan Securities, as it struggled with technical trouble on the charts. 

Meanwhile, Illumina (ILMN) shared upbeat current-quarter and full-year guidance, prompting a price-target hike from Canaccord Genuity. JetBlue Airways (JBLU) also got a lift from Raymond James, which bet on recovery for international travel, while Wolfe Research suggested traders look into CBS Corporation (VIAC) while the stock is still on sale, following last week's dramatic plummet. 

Checking In With Big Tech

Tech stocks enjoyed a rebound this week and bond yields retreated and investors rotated back into the sector. Several sector members, in particular, were in the spotlight, including Tesla (TSLA), which surged after hitting a record number of deliveries for its first quarter. Amazon (AMZN) made its way into the headlines too, as employees awaited the results of a historic union drive. Separately, a look at the stock's past suggests AMZN might continue to climb in the second quarter, while we break down the best way to play this potential pop, considering the stock's lofty price point. On the social media front, meanwhile, photo sharing app Snap (SNAP) was getting some attention, winning praise Atlantic Equities over its strong as business an pipeline products. 

Big-Name Earnings Take a Seat Next to Fed Update

Next week, investors will be looking at the Federal budget balance, the Fed's "Beige Book," the latest round of jobless claims, as well as the Empire State Manufacturing Index. Plus, business inventories, retail sales and industrial production data will be coming out. Several major names set to step into the confessional, too, including Aphria (APHA), Bed Bath & Beyond (BBBY), Citigroup (C), Delta Airlines (DAL), Goldman Sachs (GS) and UnitedHealth (UNH). In the meantime, traders can delve deeper into buying opportunities within tech, or check out Schaeffer's Senior Quantitative Analyst Rocky White's explanation of what happens when the 10-year Treasury note yields more than S&P 500 stocks. 

Last week, Cleveland.com reported Ohio could legalize sports betting as soon as this summer. We last discussed the gambling landscape in October and since then, Tennessee, Michigan, and Virginia launched their first online sports book. Meanwhile, Louisiana, Maryland, and South Dakota all legalized sports betting. To understand the potential of stocks like DraftKings Inc (NASDAQ:DKNG) is to read the writing is on the wall and realize it's a matter of when and not if in the rest of the states. Amid these legislative tailwinds, is DraftKing's potential as a growth play baked in already? Developments in the last week, plus a closer look at some technical and historical data say not so fast.

As Ohio prepares its bill, DraftKings was making two under-the-radar moves. First, they inked a deal with Worldwide Wrestling Entertainment (WWE), becoming an official partner subject to regulatory jurisdictions. DraftKings' immensely popular free-to-play pools product will integrate with WrestleMania, on April 10 and 11. A day later, they acquired Vegas Sports Information Network, Inc. (VSiN), a multi-platform content company that offers betting news and analysis.

Does wrestling and a niche news network really move the needle? Absolutely not. But consider DraftKings also has broadcasting partnerships with Walt Disney's (DIS) ESPN and Dish Network (DISH). It is also an official partner to the NBA, MLB, NFL, NASCAR, UFC, and PGA Tour. They are slowly but surely nudging and positioning themselves into every sporting landscape out there where money changes hands. And regarding VSiN, DraftKings can now tap into the Vegas gambling infrastructure, a critical element in any sports betting landscape.

A month ago this article may not have been written, because DKNG was nabbing record highs left and right, and its 14-day Relative Strength Index (RSI) crept up into 70 and firmly in overbought territory. But since a March 22 peak of $74.38, the stock has taken a roughly 18% haircut and offered up an attractive entry point for speculators, with its RSI last seen at a much more palatable 48. What's more, that pullback has sent DKNG within one standard deviation of its 80-day moving average after a lengthy stretch above the trendline. For the purpose of this study, Schaeffer's Senior Quantitative Analyst Rocky White defines that as the equity trading above the moving average for 60% of the time over the past two months and closing north of the trendline in eight of the last 10 sessions.

According to White's data, five similar signals have occurred during the past three years. DKNG was higher one month later after all five of these signals, averaging a one-month return of 13.6%. A similar move from the security's current perch would put the stock back above the $70 mark. And there's still more pessimism to be unwound to make a run at that record high; short sellers have increased their positions by 37.5% in the two most recent reporting periods and account for a healthy 7% of DKNG's total available float.

Meanwhile, option traders' sentiment has shifted. The equity's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) has moved up to 0.37. While this shows call buying has remained more popular on an absolute basis, the reading ranks in the 88th annual percentile, revealing an unusual interest in long puts.

DraftKings options can be had at a premium right now too, per its Schaeffer’s Volatility Index (SVI) of 59% sits in the lowest percentile of its annual range. This means options players are pricing in relatively low volatility expectations at the moment. Plus, the equity’s Schaeffer's Volatility Scorecard (SVS) sits up at 87 out of 100, showing that DKNG has tended to exceed option traders' volatility expectations during the past year -- a boon for option buyers.

One final note to tie things up. DraftKings' market cap tagged 25 billion in the middle of September 2020, per the chart below. After inching higher to as high as $28 billion to begin March 2021, DKNG's market cap has now pulled back to that $25 billion level. This will be an area to watch in the short-term with April stock seasonality in focus

Subscribers to Bernie Schaeffer's Chart of the Week received this commentary on Sunday, April 4.

The shares of Honeywell International Inc. (NYSE:HON) are up 3% at $226.53 this morning, opening at a fresh all-time high, after J.P. Morgan lifted its price target to $250 from $200, calling it a "top pick," while Cowen lifted its price estimate to $240 from $225. Deutsche Bank also chimed in, upgrading the equity to a "buy" from a "hold," citing the company's advantageous exposure to the current phase of the economic cycle, as well as relative underperformance this year. 

Today's pop has HON breaking out past pressure at the $220 mark, where the shares have been consolidating since late March. The equity has enjoyed solid support from its 30-day moving average, which caught two recent pullbacks, and now it sports a year-over-year lead of 57.9%. 

Analysts were split on HON coming into today, with seven saying "strong buy," and six saying "hold." Meanwhile, the 12-month consensus price target of $223.95 is a slight discount to last night's close. 

Options traders, meanwhile, have rarely been more bullish. This is per HON's 50-day call/put volume ratio of 2.29 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than all but 1% of readings from the past 12 months, suggesting calls have been picked up at a much quicker clip than usual recently. 

Apogee Enterprises Inc. (NASDAQ:APOG -- $39.46) designs and develops glass and metal products and services. Apogee Enterprises reported $0.63 EPS for the quarter, beating the consensus estimate of $0.56 by $0.07. The firm had revenue of $308.60 million for the quarter, compared to analysts' expectations of $310.23 million. Its quarterly revenue was down 8.5% compared to the same quarter last year.

Conagra Brands Inc. (NYSE:CAG -- $37.24) operates as a consumer-packaged goods food company in North America. Conagra Brands reported $0.59 earnings per share for the quarter, beating the consensus estimate of $0.58 by $0.01. The company earned $2.77 billion during the quarter, compared to the consensus estimate of $2.72 billion. Its revenue was up 8.5% compared to the same quarter last year.

Constellation Brands Inc. (NYSE:STZ -- $234.94) produces, imports, and markets beer, wine, and spirits. Constellation Brands reported $1.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.44 by $0.38. The firm earned $1.96 billion during the quarter, compared to the consensus estimate of $1.87 billion. Its revenue was up 3.2% on a year-over-year basis.

Levi Strauss & Co. (NYSE:LEVI -- $24.46) engages in the design, marketing, and sale of apparel products. Levi Strauss reported $0.34 EPS for the quarter, topping analysts' consensus estimates of $0.24 by $0.10. The firm had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.25 billion. Its revenue for the quarter was down 13.3% on a year-over-year basis.

PriceSmart Inc. (NASDAQ:PSMT -- $95.66) engages in the international management and operation of membership warehouse clubs. PriceSmart reported $0.92 EPS for the quarter, missing the consensus estimate of $1.06 by $0.14. The company had revenue of $937.60 million for the quarter, compared to analysts' expectations of $938.35 million. Its revenue was up 3.4% on a year-over-year basis.

WD-40 Co. (NASDAQ:WDFC -- $304.64) develops and sells maintenance products, and homecare and cleaning products. WD-40 reported $1.24 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.32 by $0.08. The business earned $111.91 million during the quarter, compared to analyst estimates of $114.30 million. Its quarterly revenue was up 11.9% compared to the same quarter last year.

Looking ahead to next week, investors will be looking ahead to a slew of economic data. Wall Street has several indicators to keep an eye on, including the Federal budget balance, the Fed's "Beige Book," the latest round of jobless claims, as well as the Empire State Manufacturing Index. Plus, business inventories, retail sales and industrial production data will be coming out, among other relevant figures.

The earnings docket for next week is also full, with several major names set to step into the confessional, including Aphria (APHA), Bed Bath & Beyond (BBBY), Citigroup (C), Delta Airlines (DAL), Goldman Sachs (GS) and UnitedHealth (UNH), to name just a few. All economic dates listed here are tentative and subject to change.