Market review from UTEX – week 19
The rate cut isn't coming soon. Apple announced record buyback. Here are 5 trading ideas.
The major US indices closed last week slightly plus within 1%.
Apple reported slightly better than forecasts. The stock rose 8% immediately, mainly due to the announcement of a $110 billion buyback, the largest in US history.
Bank of America reported the largest inflows into Chinese equity funds.
Bitcoin fell as low as $56,500, but reversed and is now trading at $64,500.
The Fed kept the rate at 5.25–5.5% again. Powell said it will take longer than expected to reach the conditions for a rate cut and talked about raising rates for the first time.
The earnings reporting season is slowly coming to an end. Most companies have already reported, but we may be in for a few more surprises.
Our pick of trading ideas:
Walt Disney (DIS). Report on 7 May before the open. We suggested taking a closer look at the company before the November report, and the stock has rallied 40% since then. We believe the upside potential remains. Target $150, support $107–$110.
Lyft (LYFT). Report on May 7 after the close. Another mid-term idea. We talked about the company in February, and the stock has added 35% in three months. This may be just the beginning. Support $15, target $25. The main competitor, UBER, will report on 8 May before the open.
Arm Holdings (ARM). Report on May 8 after the close. After the last report, the British chip developer's stock has become almost a market sensation, soaring from $75 to $160 in three days. In April, ARM corrected to $85. Expect more surprises, the stock's volatility is very good.
Shopify (SHOP). Report on 8 May before the open. Cloud-based platform for running online shops. The stock has rallied nicely since the November report, but corrected on the last report. We think it's a reasonable price to buy now. Support $68, target $100–$110.
Roblox (RBLX). Report on 9 May before the opening. Developer of computer games your kids play. The chart shows a $25–$50 long channel from April 2022. The company received upgrades from JP Morgan, Goldman, Barclays in February and April. We want to believe in this idea. Support $34, target $55–$60.
Happy trading!
