Market review from UTEX – week 19

SPY added 2.93%, Nasdaq — 3.44%. Any pullbacks were bought up fairly easily. Even on Wednesday, when weak preliminary U.S. GDP data for Q1 was released, the indexes ended the session in the green.

Microsoft (+11%) and Meta (+9%) reported strong results. Apple and Amazon — slightly worse, but overall, all the big tech companies exceeded Wall Street expectations this quarter. Also we should note the gains from Palantir (+10%), which reports results today, Oracle (+9%), and Taiwan Semiconductor (+8.5%).

Bitcoin has found a new range over the last twelve days: $92,000–$98,000, and is currently trading at $94,000.

One of last week’s biggest headlines — the legend Warren Buffett plans to step down as CEO of Berkshire Hathaway by the end of this year. The billionaire named Greg Abel as his successor.

The next Fed meeting, where the interest rate decision will be announced, will take place on May 7. At the moment, the probability that the rate will remain unchanged is 96.8%. As for the following meeting on June 18, the probability of a 0.25 basis point rate cut is 35.6%.

This week, we’re expecting reports from Palantir, Advanced Micro Devices, Ferrari, Novo Nordisk, Uber, Walt Disney, Arm Holdings, and Shopify.

Top 5 stocks for trading this week

🔴 AppLovin (APP). Earnings report on May 7 after market close. This mobile tech company has shown extreme volatility last quarter — a gap or strong move is possible after the report. This one is for fans of high-priced, high-risk stocks.

🟡 Peloton Interactive (PTON). Fitness equipment manufacturer. Earnings on May 8 before market open. Despite low share price, it has potential to move well on earnings reports.

🔴 Advanced Micro Devices (AMD).  In a downtrend since March 2024, –40% in six months. The price looks attractive for mid-term. But it’s better to wait for the earnings report and the forecasts.

🔴 Astera Labs (ALAB). This semiconductor company offers hardware and software solutions for AI and cloud infrastructure. Earnings on May 6 after market close. IPO in 2024, since January shares dropped from $147 to $50. Last month, it's been trying to form a new uptrend, and it’s reached $70. Worth considering for mid-term.

🟡 Walt Disney (DIS). Earnings on May 7, before market open. Strong support level around $80, which held during COVID in 2020, and in 2023, and again last month. Decent price levels, but more of a long-term play.

Trade what suits you best:

🔴 high risk, for the pros;

🟡 medium risk, for traders with little experience.

Profitable trades!

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