Market review from UTEX – week 17

The main US indices closed last week in the negative: Nasdaq -2.6%, SPY -1.6%. 

The U.S. and China were exchanging messages on tariffs all week, but there is still no progress. And Fed Chairman Jerome Powell said he would wait for “greater clarity” before considering any interest rate adjustments.

Among large companies, UnitedHealth's 22% drop after worsening its profit outlook for the year stands out. Meanwhile, pharmaceutical company Eli Lilly rose 14% when it reported a successful trial of a diabetes drug.

Bitcoin has been in an atypically narrow range of $83,000 to $86,000 all week. But it came out on top today: BTC is now trading at $87,400.

More than 20% of the companies in the S&P 500 will report this week. The most expected are Tesla, Tuesday after the close, and Google, Thursday after the close. Other interesting reports include Boeing, Intel, GE Aerospace, IBM, Colgate-Palmolive, AbbVie, Procter & Gamble and PepsiCo.

Top 5 ideas for trading this week

🔴 Philip Morris (PM). Report on April 23 before the open. While the markets are feverish, this tobacco company is doing just fine: +36% for the quarter, +82% for the year. Could be a strong move either way.

🟡 PepsiCo (PEP). Report on April 24 before the open. Shares of their main competitor Coca-Cola are up 25% for the year. PepsiCo has stalled and is down 15% over the same period. Looks like it's not bad prices for the mid-term.

🔴 Tesla (TSLA). Report on April 22 after the close. As always, as unpredictable and volatile as possible. Among UTEX traders there are a lot of fans of trading exactly TSLA, and each one has a different view — from “why is it so expensive” to “to the moon”. We wish good luck to both, but carefully consider the risks. Sitting through a loss in Tesla is not easy and sometimes even impossible.

🟡 Whirlpool (WHR). Report on April 23 after the close. Shares of the home appliance maker fell nearly 40% in the quarter. Barring a 2020 post-Covid-19 stock drop, the last time WHR was this cheap was in 2013. High interest rates and slow home sales are causing customers to put off buying new appliances. The company is trying to cut costs and align new supply chains. If the report is good, you can take a closer look in the mid-term.

🟡 Skechers USA (SKX). Report on April 24 after the close. Manufacturer of footwear, apparel and accessories. One of the sectors hit hardest by the tariff war. Nike, Deckers Outdoors, Crocs are also in it. Could shoot up without a report if there's good news on tariffs, as the stock is down 31% for the quarter. The company's outlook for the year is especially important.

Trade what suits you best:

🔴 high risk, for the pros;

🟡 medium risk, for traders with little experience.

Profitable trades!

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