Market review from UTEX — week 18

Major US indices are storming toward all-time highs, though not at the same pace as the previous week. The SPY gained 0.54%, while the Nasdaq rose 2.32%.

Semiconductor companies were among the leaders: Arm +40%, AMD +25%, Texas Instruments and Intel each gained +20%. Laggards for the week were Toyota Motor (-11%), RTX (-11%), and IBM (-8%). A spectacular sight was the short squeeze in Avis Budget Group, with shares collapsing from $840 to $200 in just a couple of days.

Bitcoin rose 4.8% over seven days to $78,000. Ethereum gained 3.6%, currently trading at $2,320.

On Wednesday, the Fed will hold a meeting on interest rates. According to CME Fed Watch, the probability of no change is 99%. More important will be how Jerome Powell comments on the current state of the economy. On Thursday, preliminary first-quarter US GDP data and the PCE Price Index — the Fed's preferred inflation gauge — will be released.

The peak of earnings season will occur over the next two weeks, with most companies reporting better-than-expected results. In the coming days, five companies from the Magnificent Seven will report — Alphabet, Amazon, Meta, Microsoft, and Apple. Other interesting reports this week include: Seagate Technology, Starbucks, Western Digital, SanDisk, ExxonMobil, Chevron, Visa, Coca-Cola, Eli Lilly, Mastercard, Caterpillar, and Merck.

Top ideas for trading this week

🔴 Seagate Technology (STX). Report due April 28 after market close. Western Digital (WDC) and SanDisk (SNDK) — report due April 30 after market close. For the last six months, memory chip manufacturers have been among the most volatile stocks on the market, especially after earnings reports. For those who like expensive, volatile stocks and strong intraday movements.

🔴 Roblox (RBLX). Report due April 30 after market close. Roblox will pay $23 million to the states of Alabama and West Virginia as part of a settlement of investigations into child safety. Beginning in June, Roblox will implement age restrictions amid a growing number of lawsuits. Until a child turns 15, parents will be able to adjust permissions for private messages and restrict access to certain games. The stock has fallen 56% over six months. Current levels look decent for the medium term, but it's better to wait for the report and the company's guidance.

🔴 Avis Budget Group (CAR). Report due April 29 before market open. One of the global leaders in car rental and car-sharing. The short squeeze ended with a massive crash, but there should still be strong movements this week in connection with the report.

🔴 Bloom Energy (BE). Report due April 28 after market close. Bloom Energy's servers provide continuous power for data centers, industrial facilities, and critical infrastructure. In April, the company announced an expanded partnership with Oracle. +145% over six months, +50% over the last month. A strong move is likely after the report.

🔴 Estee Lauder (EL). Report due May 1 before market open. The company is seeking financing to acquire Spanish fragrance company Puig in order to create a competitor to France's L'Oreal. Estee Lauder has hired J.P. Morgan to structure a financing package of approximately $5.89 billion for the acquisition. This is a decent price for the medium term, but it's better to wait for the report.

High risk — for pros.

Profitable deals!

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