S&P 500, Dow Eke Out Monthly Wins Amid Earnings Barrage

The VIX hit its lowest level since November 2021

Deputy Editor
Apr 28, 2023 at 1:29 PM
facebook X logo linkedin


Earnings season remained in full swing, with Big Tech stealing the show. Ahead of the deluge of reports, Wall Street traded within a tight range. Embattled regional bank First Republic Bank (FRC) reported a 40% drop in deposits, which dragged the broader market as recession fears reignited. By midweek, investors were pondering how the Federal Reserve would respond, while oil prices shifted lower for the month. Friday brought an onslaught of negative reports, sending stocks to struggle for direction most of the morning and the Cboe Volatility Index (VIX) to its lowest mark since November 2021. As of this writing, stocks have managed to swim toward afternoon gains.

For both the day and week, the Dow Jones Industrial Average (DJI), S&P 500 Index (SPX), and Nasdaq Composite (IXIC) are all headed toward healthy advances. The blue-chip index is slated for its highest close since mid-February. For April, The Dow and SPX are eyeing wins, while the strenuous performance in tech is sending the Nasdaq toward a monthly loss.

This Week's Earnings of Note

As previously mentioned, it was a stellar week in the earnings confessional. While FRC deposit blunder weighed on the broader market, the regional bank managed to turn in quarterly earnings and revenue that beat expectations. Dow component 3M (MMM) also reported better-than-expected quarterly results, as did Facebook parent Meta Platforms (META).

Restaurant chain concern Chipotle Mexican Grille (CMG) snagged record highs and earned a slew of bull notes after reporting top- and bottom-line beats. American Airlines (AAL) and Southwest Airlines (LUV) moved in opposite directions after their respective reports. Lastly, Activision Blizzard (ATVI) scored a first-quarter earnings win, but news that U.K. regulators are blocking Microsoft's (MSFT) $69 billion acquisition of the video game publisher outweighed the strong results.

Intriguing Entry Points, Strategy to Use

Aluminum stock Alcoa (AA) sports a bearish technical setup on the charts, and could move lower soon. The same could be said of Walt Disney (DIS), which just came within one standard deviation of its historically bearish 60-day moving average. Plus, how call traders doubled their money with our PulteGroup (PHM) call recommendation, and what to do in a highly volatile environment.

Investors Look Ahead to Fed's Big Rate Decision

Next week features even more big-name earnings reports, but the Federal Reserve's latest interest rate decision will likely be at the front of investors' minds. In the meantime, read about the bearish seasonality ahead, per Schaeffer's Senior Quantitative Analyst Rocky White, as well as a why Schaeffer's Senior V.P. of Research Todd Salamone thinks bears are still in control.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI