Market review from UTEX — week 20

China will lower its tariffs on U.S. goods from 125% to 10% for 90 days. In return, the U.S. will cut its tariffs on Chinese imports from 145% to 30% (10% base rate + 20% reciprocal duties). The new tariffs come into effect on May 14

The main US indices stayed in a narrow range all week without strong movements, which we have already started to get used to. Nasdaq lost -0.43%, SPY -0.14%.

Lilly (Eli) & Co. fell for the second week after the report: another 10% drawdown. Alphabet lost 7% due to the looming threat to the profitable search engine. Apple's top manager Eddy Cue said the company may add AI services to its Safari browser. And that's against the potential end of its partnership with Google.

Strong reports came from Trade Desk (+31%), Insulet (+20%), Ubiquiti (+20%), Rockwell Automation (+16%), and Walt Disney (+15%).

On May 7, the Fed decided to keep the key rate in the current range of 4.25-4.5%. Jerome Powell said the risks of rising unemployment and inflation have increased. But the Fed is now in a "good position" and may "wait and see" how the tariff-related uncertainty plays out. "I can’t tell you how long it will take, but for now, it does seem like it’s a fairly clear decision for us to wait and see and watch," the Fed chief said.

Bitcoin has consolidated above the $100,000 mark and is now trading at $104 000. Ethereum rose 35% in a week to reach $2,500. Just a month ago it was trading just above $1500!

The peak of the earnings season has passed, but there is more to come. This week we are waiting for the results of Cisco Systems, Walmart, Alibaba Group, Deere & Company and Applied Materials.

Top 5 ideas for trading this week

🟡 Doximity (DOCS). Report on May 15 after the close. A platform for healthcare professionals. The stock is up 142% for the year, but has pulled back 25% in the last quarter. Pricing is quite reasonable.

🔴 Take-Two Interactive Software (TTWO). Report on May 15 after the close. Computer game developer. On May 2, the company announced that the release of Grand Theft Auto (GTA) VI has been delayed from fall 2025 to May 2026. The stock sagged, but recovered most of the decline within a week. It's been in a stable uptrend since early 2023. A gap up and intraday move is likely after the report. For expensive stock fans.

🔴 Oklo (OKLO). Report on May 13 after the close. Oklo is developing the Aurora mini-reactor, which can power data centers, industrial facilities and military bases, for example. The reactor can operate for up to 10 years without refueling. Grew from $10 to $50 from October 2024 to February 2025, sagging 50% in the last quarter. Another potential mid-term stock. OKLO is tough to trade intraday.

🟡 International Game Technology (IGT). Report on May 13 before the open. Slot machine maker. The stock has been in a downtrend since mid-2023 and has sagged from $34 to $14. In the last month it has been trying to bounce off the lows, has gotten to $17. If the company reports normally, we can look at the medium- to long-term. A quick move is unlikely.

🔴 Five Chinese companies to watch out for amid U.S.-China tariff talks. Maybe it's time to take some for the mid-term.

• JD.com (JD). Report on May 13 before the open.
• Tencent Music Entertainment Group (TME). Report on May 13 before the opening.
• Alibaba Group (BABA). Report on May 15 before the open.
• NetEase (NTES). Report on May 15 before the open.
• KE Holdings (BEKE). Report on May 15 before the open.

Trade what suits you best:

🔴 high risk, for the pros;

🟡 medium risk, for traders with little experience.

Profitable trades!

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