Tesla and Nvidia helped the Nasdaq rise for the week
Tech was the talk of the town this week. The Nasdaq Composite (IXIC) got off to a red-hot start after Tesla (TSLA) boosted the broader tech sector amid reports that President-elect Donald Trump wants to relax self-driving regulations. The tech-heavy index's momentum kept strong as investors awaited earnings from artificial intelligence (AI) frontrunner Nvidia (NVDA), while the Dow Jones Industrial Average (DJI) fell amid escalating tensions between Russia and Ukraine.
Nvidia's earnings event came and went, boosting the Dow, Nasdaq, and S&P 500 Index (SPX). After the fact, the blue-chip index logged a massive win, as traders rotated out of tech and into cyclical stocks that benefit from a better-performing economy. At the end of the week, investors unpacked the S&P flash services and manufacturing purchasing managers' indexes (PMI), and all three benchmarks were heading for weekly wins.
Snowflake Stock Lands Post-Earnings Pop
Investors had plenty of quarterly reports from tech and retail names to consider. You can read all about the options activity surrounding Nvidia stock before and after earnings right here. Software firm Snowflake (SNOW) reported a blockbuster third quarter, sending shares towards their best day ever as analysts and options traders made their post-earnings calls. Plus, shares of fintech names NetApp (NTAP) and Intuit (INTU) both gapped lower after earnings.
In the retail space, home improvement giant Lowe's Companies (LOW) was a target for options traders, after the company raised its outlook. Apparel retailers Gap (GAP) and Ross Stores (ROST) both moved higher after their respective reports, while BJ's Wholesale Club (BJ) and TJX Companies (TJX) moved in wildly different directions.
Analyst: Robinhood Could Benefit from Crypto-Friendly Admin
After a slew of post-election bull notes last week, analysts have kept their hands busy. Needham upgraded shares of Robinhood Markets (HOOD), saying the stock could benefit from crypto-friendly leadership at the U.S. Securities and Exchange Commission (SEC). Chewy (CHWY) fetched a rare double-upgrade at BofA Global Research, with the analyst noting a rise in pet adoption since the beginning of the year.
While other biotech stocks suffered following Robert F. Kennedy Jr.'s nomination to lead the Department of Health and Human Services, Merus (MRUS) was upgraded on optimism surrounding the company's cancer treatment. Elsewhere, struggling Roku (ROKU) stock received a bull note at Barid, while Goldman Sachs downgraded Redfin (RDFN) to sell.
Consumer Data, Retail Earnings On Tap for Thanksgiving Week
A host of consumer data is scheduled for release, with the shortened Thanksgiving week featuring the personal consumption expenditure (PCE) index. In addition, retailers are on the earning docket before Black Friday, with Abercrombie & Fitch (ANF), Best Buy (BBY), Dick's Sporting Goods (DKS), (KSS), Macy's (M), Nordstrom (JWN), and Urban Outfitters (URBN) expected to announce results.
Schaeffer's Senior Quantitative Analyst Rocky White breaks down how options traders should play the holiday-shortened week, while CMT, Senior Market Strategist Matthew Timpane looks at a backdrop that might be hinting at a trend reversal.