The Dow is eyeing another weekly win
Earnings season remained in full swing, with Big Tech stealing the show. Ahead of the deluge of reports, Wall Street traded within a tight range. Embattled regional bank First Republic Bank (FRC) reported a 40% drop in deposits, which dragged the broader market as recession fears reignited. By midweek, investors were pondering how the Federal Reserve would respond, while oil prices shifted lower for the month. Friday brought an onslaught of negative reports, sending stocks to struggle for direction most of the morning and the Cboe Volatility Index (VIX) to its lowest mark since November 2021. As of this writing, stocks have managed to swim toward afternoon gains.
For both the day and week, the Dow Jones Industrial Average (DJI), S&P 500 Index (SPX), and Nasdaq Composite (IXIC) are all headed toward healthy advances. The blue-chip index is slated for its highest close since mid-February. For April, The Dow and SPX are eyeing wins, while the strenuous performance in tech is sending the Nasdaq toward a monthly loss.
This Week's Earnings of Note
As previously mentioned, it was a stellar week in the earnings confessional. While FRC deposit blunder weighed on the broader market, the regional bank managed to turn in quarterly earnings and revenue that beat expectations. Dow component 3M (MMM) also reported better-than-expected quarterly results, as did Facebook parent Meta Platforms (META).
Restaurant chain concern Chipotle Mexican Grille (CMG) snagged record highs and earned a slew of bull notes after reporting top- and bottom-line beats. American Airlines (AAL) and Southwest Airlines (LUV) moved in opposite directions after their respective reports. Lastly, Activision Blizzard (ATVI) scored a first-quarter earnings win, but news that U.K. regulators are blocking Microsoft's (MSFT) $69 billion acquisition of the video game publisher outweighed the strong results.
Intriguing Entry Points, Strategy to Use
Aluminum stock Alcoa (AA) sports a bearish technical setup on the charts, and could move lower soon. The same could be said of Walt Disney (DIS), which just came within one standard deviation of its historically bearish 60-day moving average. Plus, how call traders doubled their money with our PulteGroup (PHM) call recommendation, and what to do in a highly volatile environment.
Investors Look Ahead to Fed's Big Rate Decision
Next week features even more big-name earnings reports, but the Federal Reserve's latest interest rate decision will likely be at the front of investors' minds. In the meantime, read about the bearish seasonality ahead, per Schaeffer's Senior Quantitative Analyst Rocky White, as well as a why Schaeffer's Senior V.P. of Research Todd Salamone thinks bears are still in control.