THE GIST (“THE WHAT”)
Blow-out earnings by Microsoft and Alphabet failed to provide a meaningful boost to the morning rally amid ongoing banking turmoil and the looming debt ceiling. The S&P Index (SPX) extended Monday’s losses, falling another 15.62 points (-0.38%) to close near day’s lows at 4056.
Note: Our daily “S&P 500 Trading plan” will be posted around 9:30/10:00am EDT, every trading day.
For the Trading Plans published this morning, please click here
For the last published Results of the Morning Trading Plans, please click here.
THE DETAILS (The “How & Why”):
Earnings beats by Microsoft and Alphabet lifted the markets at the open. Chipotle was another strong gainer of the day, up 12.91%, hitting an all-time high of 2009.85 after the fast-food giant reported robust same-store sales growth.
The index however pulled back on hitting the highs at 4089.67 as the focus shifted back to the ongoing worries about any systemic risk within the American banking sector sparked by the failure of Silicon Valley bank. First Republic bank extended its slid further 30% to hit a new low at $5.69, down from $147 (-96%) in February this year as investors look for signs that the struggling bank will be able to avoid a collapse after experiencing a massive 40% exodus in deposits this quarter.
On the other hand, Microsoft and Alphabet gave a strong boost to the Tech sector early in the session, but Alphabet gave up its gains despite posting better-than-expected jump in revenues. Microsoft closed solidly higher by 7.24% after beating revenue and earnings expectations and reporting a huge gain in its Intelligent Cloud segment. Investors will be keenly awaiting quarterly earnings releases by Meta and Apple.