Hello there,
Welcome back to Nasdaq Insights Weekly ! It's great to have you with us again as we dive into the latest happenings in the world of Nasdaq.
Let's jump right in and explore what's been moving and shaking the market this week. Stay tuned for some insightful analysis and tips to help you stay ahead of the game.
Keypoints of the Newsletter
NASDAQ 100 Closing Price: 18,536.65 points
Weekly Change: -1.45%
Top Gainers: Charter Communications (+6.91%), Warner Bros. Discovery (+6.46%)
Top Losers: Moderna (-12.91%), Datadog (-9.52%)
Key Economic News: Speeches from several Fed members, consumer confidence and housing indices, GDP data, and jobless claims.
Market Review
Closing Price: 18,536.65 (May 31, 2024)
Weekly Change: -1.45%
This week, the NASDAQ 100 saw a decline of 1.45%. The market was influenced by mixed corporate earnings, Fed speeches, and key economic data releases. The technology and biotech sectors faced significant challenges, while some communication segments performed well.
You can see in the chart here that the Nasdaq closes the week by recovering on Friday. A high volume node reacted well on the 1000-day composite volume around 18,300. This continued decline throughout the week offers us scalp opportunities at higher levels. Many NPOCs and single prints are still present and can react to offer us interesting scalp trades.
On the TPO chart, we also notice the 18,300 level which has reacted, showing it's a very strong technical support, and the reaction at this level seems logical. We are on the verge of re-entering the previous range between 18,650 and 18,950. I will give you my plan for next week in the TIPS of the week.
Top Movements
Top Winners
Charter Communications (CHTR) - Increase of 6.91%
The rise in Charter Communications was driven by the announcement of new services and higher-than-expected subscriber growth forecasts.
Warner Bros. Discovery (WBD) - Increase of 6.46%
Warner Bros. Discovery's gain was due to successful new content releases on its streaming platforms and upward revisions in growth forecasts by several analysts.
Top Losers
Moderna (MRNA) - Decrease of 12.91%
Moderna's significant decline was linked to concerns about the long-term efficacy of its vaccines and disappointing clinical trial results for new products.
Datadog (DDOG) - Decrease of 9.52%
Datadog suffered a decline following financial results that fell short of expectations, partly due to a drop in demand for its cloud monitoring services.
Economic News
May 28, 2024:
Fed Mester Speech: Loretta Mester expressed concerns about persistent inflation despite positive economic indicators.
House Price Index MoM (Mar): The index showed a 0.4% increase in March, reflecting a strong housing market.
CB Consumer Confidence (May): The consumer confidence index for May fell to 106.4 from 108.6 in April, indicating consumer concerns about inflation.
Fed Kashkari and Daly Speeches: Emphasized the need to maintain accommodative monetary policy.
May 29, 2024:
MBA Mortgage Applications (May/24): Mortgage applications fell by 1.9%, suggesting a stabilization in the housing market.
Fed Williams Speech: Discussed recession risks.
Fed Beige Book: Showed moderate growth with persistent inflation pressures.
May 30, 2024:
Fed Bostic Speech: Called for caution against raising interest rates.
GDP Growth Rate QoQ 2nd Est (Q1): Revised up to 2.2%.
Initial Jobless Claims (May/25): Increased to 230,000, indicating a slight weakening in the labor market.
University of Michigan’s Consumer Sentiment Index: Fell to 58.4 in May from 63.5 in April.
May 31, 2024:
Core PCE Price Index YoY (Apr): Showed a year-over-year increase of 4.5%, indicating persistent inflation pressures.
Personal Income and Spending (Apr): Personal income and spending increased by 0.3% and 0.4%, respectively, reflecting stable consumption.
Tips of the Week
Next week will be marked by news as a new month begins. On my side, I will be patient and wait for the daily news to see the direction that will be set. The strength of the upcoming news will set the tone for the week and indicate the bias to follow to make profits quite easily.
There are also several levels that interest me if we approach them, specifically all the NPOCs above 18,600. However, if we see a confirmation below 18,300, we can expect a bearish week to join the previous lower range which extends to around 18,000.
Upcoming Events for the Next Week
June 3, 2024
S&P Global Manufacturing PMI Final (May): Moderate importance.
ISM Manufacturing PMI (May): High importance.
Construction Spending MoM (Apr): Low importance.
June 4, 2024
Factory Orders MoM (Apr): Moderate importance.
RCM/TIPP Economic Optimism Index (Jun): Low importance.
June 5, 2024
MBA Mortgage Applications (May/31): Low importance.
ADP Employment Change (May): High importance.
S&P Global Composite PMI Final (May): Moderate importance.
ISM Services PMI (May): High importance.
June 6, 2024
Balance of Trade (Apr): Moderate importance.
Initial Jobless Claims (Jun/01): High importance.
June 7, 2024
Non-Farm Payrolls (May): Extremely high importance.
Unemployment Rate (May): High importance.
Average Hourly Earnings (May): Moderate importance.
