Market review from UTEX – week 28
Tesla soars 27%, the S&P 500 and Nasdaq's new all-time-high. +5 trading ideas.
New all-time highs – S&P 500 added 1.5% over the week, Nasdaq +3%. The biggest surprise was the explosive growth of Tesla, its shares soared by 27% in 4 trading days! Chipmakers also grew – AMD +7%, TSM +7%. Apple added 6% to its capitalization.
Bitcoin is feverish: on Friday the price fell below $54,000, but found support at these levels. BTC is now trading around $57,000.
On Tuesday and Wednesday, Fed Chairman Jerome Powell will speak, and on Thursday, consumer inflation data for June will be released.
Friday marks the start of a new reporting season, with several major U.S. banks releasing their results.
Here are 4 trading ideas and 1 benchmark for the coming days.
Fastenal Co. (FAST). Reporting on July 12 before the open. The large distributor of industrial products. The stock is down 15% for the quarter, looking good for the mid-term with support at $60.
PepsiCo (PEP). Report on July 11 before the open. The stock has been trading in the $155–$180 range for a year, now closer to the lower boundary. PEP traditionally moves well after the report intraday. It is good for day-trading, but we recommend looking at other tickers for the mid-term.
ConAgra Brands (CAG). Report on July 11 before the open. A major food manufacturer in the US. Very slow trading intraday. Serious support at $26 from which to push off for the mid-term. Unlikely to see any explosive upside here, but could consider a $40 target for a few months.
JPMorgan Chase & Co. (JPM). Report on July 12 before the open. The largest U.S. bank, which is doing great. Capitalization is rising steadily, with the stock adding 40% for the year. Not for trading, but more as an indicator of stability in the industry. If there are red flags, it will pull the entire sector with it.
Tesla (TSLA). We gave this idea in last week's pick, suggesting that when TSLA breaks $200, there will be increased volatility in the stock. Tesla was already trading at $250 on Friday; it's the hottest company in the market right now. We wait for Elon Musk's comments, maybe even more robotaxi announcements.
Profitable trades!
