Monday: Holding Steady
The S&P 500 index made an early attempt to clear Friday’s high (4232), which coincided with the premarket high of 4232.50 and failed. Just as the index found resistance just below the premarket high, it found support above the premarket low (4214) at 4214 and reversed course.
The rebound off the early decline could not recapture Friday’s all-time closing high (4228.25), by day’s end. Instead, it settled 2.75 in the red at 4225.50, which just happened to match the former all-time closing high of 4225.25.
Fastly Inc. (NYSE: FSLY), following the recent rebound of high price/earnings tech growth stocks and had one of its best days of the year. For the session,it added $3.39 to close at $50.39, crossing over the $50 barrier for the first since May 5, when it cratered from $58.06 to $42.31 following a Q1 miss for EPS and sales.
On the downside, Context Logic (NASDAQ: WISH) continued to disappoint shareholders falling to a new all-time low after a class action lawsuit against the company was announced on Saturday.
More Context Logic: https://tinyurl.com/2urjtczk
Tuesday: Chopfest Continues
Another session when index could not follow through on premarket gains that lead to an intraday retreat. However, the quick move to the lows was made around noon EST as opposed to closer to the open.
The retreat easily breached Monday’s low (4214) but quickly recovered. The index was able to near the high for the session (4236.75), but tailed into the close ending the day flat at 4225.50.
This marked the third consecutive close within a three point range (4225.50-4228.25).
The big loser of the day of Coupa Software Inc. (NASDAQ: COUP), a slight Q1 beat for EPS and sales and a small raise in guidance as well was not good for the cloud-based, business spending management platform. The issue ended the session in the red by $19.33 at $217.40 and made a new 52 week low.
Leading the way on the upside in the growth tech sector once again was Fastly Inc. (NYSE: FSLY). After a brisk premarket decline the issue roared back to end the session in the green by $5.30 at $56.20.
More on Fastly: https://tinyurl.com/ynfck4jw
Wednesday: Resistance Is Resistance
Once again, the premarket high (4235), which coincides with the last three daily highs (4232-4236.75), held off the open and index reversed course. However, it found support well above Tuesday’s low (4207) at 4217.
The index attempted to rally into the close but ended the session just off the low, down 7.25 points at 4218.50.
On Tuesday, Bitcoin futures (@BTC on Tradestation platform) finally breached the lower end of its 10 day trading range ($35-$40) falling to $30,915 and closing at $32,910. However, it rebounded strongly when El Salvador declared it as a legal tender. That news instigated at plus $3k rally as the contract ended the session up from $32,910 at $36,375,
Macys Inc.(NYSE: M) finally broke out of its thirteen day trading range. After it finally cleared out the sellers at $19, it rallied to $20.36, but backed off to end the session at $19.60.
More on Macy’s: https://tinyurl.com/tpj9r8vj
Thursday: Breakout Or Fake Out?
Just when the S&P 500 seemed to be breaking down after the CPI data it came roaring back.
In fact, it was able to break the major resistance area and make a new all-time high at 4259. However, a brush round of profit taking hit the market and it retreated 20 handles to the Wednesday closing price (4118.5).
Buyers came back in and nudged the index to a new all-time closing high by a nice margin.
For the day, it closed higher by 9.50 points at 4238, or nearly 10 points above its former closing high.
Gamestop Corp (NYSE: GME) finally got what it deserved after its Q1 report. The issue had its worst day since March 15, swooning $82.17 from $303.56 to $220.38.
Amazon Inc. (NASDAQ: AMZN) rallied to near the upper-end of its 11-month trading range ($3000-$3500) following a string of positive press releases from the e-commerce giant.
In addition, BMO Financial Group selected Amazon Web Services as its preferred strategic cloud provider. The company also released DJ Mode for Amazon Music. DJ Mode is an on-demand single-destination listening experience combining personalization and streaming control with the personality of DJ-hosted radio.
For the session, Amazon gained $68.50 to close at $3349.65.
Friday: Ending The Week At All-Time-High
For a change, both premarket and intraday price action was very subdued.
Most of the price action was in lower to mid 3230 handle as the bulls and bears battled for control of the index.
However, the bulls took control mid-day and pushed the index to new all-time closing high.
The index ended the session just off the high for the day (4247.75) in the green by 7.75 points at 4245,75, both were just shy of the index’s all-time high made on Thursday at 4249.
The Week Ahead
Not a lot of earnings on the docket for next week. Reports of interest include Oracle Corp (NYSE: ORCL) H&R Block (NYSE: HRB), Lazy-Boy Inc. (NYSE: LZB), Lennar (NYSE: LEN), Kroger Company (NYSE: KR), Jabil Circuit (NYSE: JBL) and Adoble Systems (NASDAQ: ADBE).
The Street’s focus will be on several notable economic reports. Retail sales, Producer Price Index and housing starts/building permits for May. The results of these reports along with the FOMC meeting commentary will provide updates on the rise of inflation and what the Fed plans to do about.
Issue With Upcoming Catalyst
There are not only positive catalysts for a stock, there can be negative ones as well.
Since the pandemic many bio/pharma issues have ebbed and flowed the results/production of vaccines. The news flow has a bigger impact on some smaller and less diversified companies it has instigated big moves in a few of the larger ones as well.
On Friday, the Food and Drug Administration told Johnson & Johnson (NYSE: JNJ) to throw out about 60 million COVID-19 vaccines due to contamination. The news instigated a decline in shares of the issue on Friday (lower by $2.12 at $164.96).
The question now remains: will there be follow through on the downside to the news. If so, will they continue and make a new monthly low again. After bottoming in May at $163.12, so far the issue has bottomed in June at $162.07 and thus has been after to distance itself from it. The next monthly low does not come in April’s low ($156.53).