Nasdaq Eyes Weekly Win; Dow, SPX Fall on Debt Ceiling Fatigue

Nvidia's quarterly report lifted the tech-heavy Nasdaq

Deputy Editor
May 26, 2023 at 1:51 PM
facebook X logo linkedin


This week the U.S. debt ceiling once again took center stage, as multiple meetings between lawmakers failed to produce a resolution. A divided central bank also put pressure on sentiment, with an upward revision to gross domestic product (GDP) and better-than-expected jobs data failing to lift Wall Street's spirits. However, the Nasdaq Composite Index (IXIC) rallied after Nvidia's (NVDA) blowout quarter boosted the tech sector, and is pacing for its fifth-straight weekly win. The Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) are heading for weekly losses, while the Cboe Volatility index (VIX) is eyeing a win.

Retail Earnings Take Center Stage

The sour sentiment on Wall Street came amid a flood retail reports. Kohl's (KSS) shared an unexpected profit despite higher-than-usual inflation, while Gap (GPS) also posted a surprise earnings beat. Discount retailer Big Lots (BIG) fell to a more than 30-year low, after turning in quarterly losses that nearly doubled expectations.

Home improvement retailer Lowe's (LOW) shared better-than-expected first-quarter results, but lower 2023 forecasts weighed on the results, while strong demand and leaner inventory levels helped Urban Outfitters (URBN) best expectations. Outside of retail, NVDA soared to an all-time high after earnings, while Snowflake (SNOW) eyed its worst day ever following its quarterly results. 

Stocks to Watch Right Now

Subscribers to Schaeffer's Weekend Trader got an early look at why eBay (EBAY) is heading for a short-term drop. Conversely, Electronic Arts (EA) and Starbucks (SBUX) both just pulled back to historically bullish trendlines. Yelp (YELP) may also be worth keeping an eye on, as its top shareholder is urging for a sale or merger, calling the stock "shockingly undervalued." Don't forget about our Options Under $5 service, which helped subscribers more than double their money on our KB Home (KBH) recommendation. 

How to Play Memorial Day

With markets closed on Monday for Memorial Day, investors will have a shortened week to ponder debt ceiling negotiations and earnings reports. Schaeffer's Senior Quantitative Analyst Rocky White compiled a list of the best stocks to own before the holiday, while Schaeffer's Senior V.P. of Research Todd Salamone quantified the latest market sentiment change.

 

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