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THE GIST (“THE WHAT”)
Another day of choppy directionless price action as investor digested a deluge of mixed earnings reports across sectors. Consolidating near record highs and awaiting a catalyst to launch an assault on record highs, the index inched towards all-time highs and closed off of session highs at 3010.29, slightly up 5.77 points and gaining 0.19% over previous session’s close.
Technology was the only sector to outperform after stellar results posted my Microsoft, Align Technology and Lam Research lifted sentiment that were dampened by Texas Instrument in Wednesday’s session.
THE DETAILS (The “How & Why”):
Earnings rolled out in full swing in the busiest day of this earnings’ season. Microsoft boosted the index at the open. Stronger-than-expected results driven by its cloud business and a rosy fourth quarter guidance lifted its stock by 1.97% and improved overall sentiment within this space.
Align Technology Inc. and Lam Research Corp. were the top gainers of the session, surging 14.70% and 13.90% on surpassing earnings estimates and leading a sharp rebound in semiconductor stocks. Applied Materials Inc., KLA Corp and Micron Technology Inc. jumped more than 5% apiece.
On the flip side, investors punished earnings misses by Twitter Inc., Alliance Data Systems Corp, TechnipFMC PLC and 3M Co. Twitter Inc. plunged 20.81% after the social media company missed revenue estimates, unable to monetize its large increase its user base. Industrial conglomerate 3M Co. was another victim of trade tensions and slowing global economy, falling 4.07% on missing revenue estimates and slashing its profit and sales outlook.
Meanwhile, treasury yields settled a choppy session mostly unchanged after the ECB left its benchmark interest rates unchanged, a move that was widely anticipated. On the economic data front, durable goods orders fell 1.1% last month, registering a worst drop in four months. The weekly jobless claims, however, fell unexpectedly last week, suggesting tight job market despite slowing economic growth.