Weekly market review from UTEX – 3

Last week was a memorable week of Big Tech reports. Almost all showed great results, and the market reaction to them was even better: Microsoft, Google, and Meta all showed huge growth! 

The negatives were added by the shares of regional banks, which along with the increase in the government debt ceiling will drive the markets in the coming weeks. First Republic Bank is definitely “all over”: closed and sold to JPMorgan Chase. Keep a close eye on KRE – a regional bank ETF with downside potential as low as $30.

The main event of the coming week is the next Fed meeting. Most likely, they will raise the rate by the expected 0.25%. But whether they will hint at a pause in the cycle of increase is unknown. We recommend not to trade actively before the meeting and to build up trading volumes on Thursday-Friday.

Top stocks to trade this week:

Marriott International (MAR) – quarterly report today before the market opens. The global hotel chain has been able to recover nicely from Covid restrictions. The share price is consolidating near historic highs, expect to move out of the range around $180.

Microstrategy Inc. (MSTR) – quarterly report today before the market opens. A company with 140,000 bitcoins on its balance sheet is likely to correlate with the BTC rate. But let's not forget that Microstrategy has a pretty good BI product: expect volatility.

Apple (AAPL) – quarterly report on Thursday after the market closes. Not very favorable conditions in the foreign exchange market and weak demand for the flagship iPhone 15 may upset investors. Plus, the market will already be reacting to the outcome of the Fed meeting.

Lyft (LYFT) – quarterly report Thursday after the market closes. Very interesting stock for Thursday. Lyft has not been doing well since the first day of its IPO, and the lag from Uber, its main competitor, is growing quarter to quarter. Nevertheless, the company has a new CEO and everyone is waiting for a new growth plan. Both a technical and news bounce to the $13-$14 area is very real.

Coinbase Global (COIN) – quarterly report Thursday after market close. A company in the crypto world that has been on the defensive to the last under the onslaught of the SEC. Recent allegations of illegal staking and stricter oversight are taking a toll on quotes. The company's comments about its plans to develop business outside the U.S. will be able to keep the price from falling, and the process has already started. We will closely listen to the conference call.

The reporting season is over the equator, the volatility in late May is likely to be lower than now. Fund your account and start trading today!

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