Market review from UTEX – week 33

After the worst and best day of the past year, the S&P 500 closed last week down just 2 points. The volatility index reached 65. On Monday, markets opened with a big gap down amid talk of a possible recession in the US and declining Asian markets, but the gap closed in 5 trading sessions.

Strong results were shown by Shopify (+27%), Taiwan Semiconductor (+10%) and Eli Lilly (+11%). Investors were disappointed by reports from Super Micro Computer (-18%) and Airbnb (-10%).

Bitcoin dipped below $50,000 on 5 August but held its ground and gradually returned to $60,000.

July producer price index will be released on Tuesday, and consumer price index (CPI) will be released on Wednesday. 15 August is the retail sales statistics for July.

At first glance, the market has stabilised and panic sentiment is fading. We do not exclude the buyout of the companies from the technology sector, which have lost a lot – Nasdaq is still minus 8.5% for the month. A new wave of purchases of small-cap stocks from Russell 2000 is also possible. All this is provided that there will be no new negative news, to which in the current uncertainty there may be a sensitive reaction.

90% of the S&P 500 companies have already reported. We have picked the top 5 ideas for you to trade in the coming days.

Alibaba (BABA). Report on 15 August before the open. Owner of Taobao and AliExpress. The $68–$70 support level has been formed since early 2024, and still no upside. Of the positive signals – zero reaction to the general drawdown of the markets.

Cisco Systems (CSCO). Report on 14 August after the close. Developer and seller of networking equipment. News came out Friday about another wave of layoffs at the company. Strong support at $45, but with a negative reaction to the report, it could break down and go lower. 

Deere & Company (DE). Report on 15 August before the open. American machinery company. The stock is expensive, and there's good volatility on reports there. For those who like higher-priced stocks.

Cardinal Health (CAH). Report on 14 August before the open. Drug distributor. The stock traditionally moves well intraday after reports. 

Advanced Micro Devices (AMD). The chipmaker's stock has shed 26% in a month. If the technology sector continues to recover from the fall, it is one of the main candidates for growth.

Good trading!