Despite monster earnings beats from Microsoft Corporation (NASDAQ:MSFT), Intel Corporation (NASDAQ:INTC) and Amazon.com, Inc. (NASDAQ:AMZN), the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) closed near flat Friday.
With that in mind, let’s look at the top stock trades for Monday morning.
Top Stock Trades for Monday #1: Nike Stock
Nike Inc (NYSE:NKE) did not report earnings this week like a slew of other names. But that hasn’t stopped the stock from pressing higher despite lingering doubts over the rest of the market. However, HSBC analysts did upgrade the stock on Friday, slapping a $77 price target on the name.
That gave NKE stock a boost on the day, up about 2.5% Friday. Its prior 2015 highs near $65 ultimately turned into support and NKE is now hitting its head up against $70 resistance.
Bulls should look for a breakout over this level possibly next week and look to buy NKE, should it happen.
Top Stock Trades for Monday #2: Microsoft
MSFT was one of the companies that reported earnings and they were great results. However, shares quickly reversed their gains on the day, rallying just 1.4%.
Technically still above $95, a close below should put short-term bulls on caution. Microsoft has an attractive long-term growth story, which is helping its stock sport a healthy and steady uptrend.
Its 100-day moving average has been a great buying spot and MSFT could revisit this level should $95 fail to hold. Over $95 and MSFT likely tests $100 or more.
Top Stock Trades for Monday #3: Shake Shack
Shake Shack Inc (NYSE:SHAK) climbed almost 4% on Friday and has earnings scheduled for May 3.
Investors will want to keep that in mind with shares climbing right into resistance.
SHAK struggled with the $47 level in December and January, but that came after a rally from roughly $31. Beginning its rally from $37 this time is helping give it enough juice to push SHAK through this time.
While now technically above resistance, the setup is too risky for me with earnings on deck. One would have to use a combination of options to protect against an earnings-fueled decline back below this level. But if SHAK can stay above, bulls will remain in firm control. Below $47 and trend-line support will be the next critical spot to watch.
Top Stock Trades for Monday #4: Ventas Stock
The real estate investment trust (REIT) sector has struggled this year as interest rates have been on the rise. But that wasn’t enough to keep a lid on Ventas, Inc. (NYSE:VTR), which beat on earnings per share and revenue expectations Friday morning.
VTR stock rallied almost 10% in response, a big move for a struggling name. In fact, VTR is one of my favorite dividend-paying names. Looking at the 5-year chart, VTR’s rally is encouraging.
I don’t know that the $52 level will be significant, but closing above this level with authority next week would give bulls a much-needed confidence boost.
Momentum via the MACD (blue circle on the chart) is also shaping up nicely.
Top Stock Trades for Monday #5: Intel (INTC)
Intel didn’t beat earnings and revenue estimates — it hammered them. Earnings per share came in 21% above expectations, while revenue results of $16.1 billion came in $1 billion higher than analysts’ estimates — $1 billion!
I liked the earnings results from Advanced Micro Devices, Inc. (NASDAQ:AMD) earlier this week and Intel put up a great quarter, too. There’s nothing wrong with owning both — along with Nvidia Corporation (NASDAQ:NVDA) — via the basket approach, and these earnings only back that theory up.
With an initial breakout over the $53 level, INTC looked to be heading higher Friday morning. Now pulling back though, bulls are hoping $53 acts as support. If it doesn’t, trend-line support near $50 to $51 should give bulls another shot to buy.
Why do we like Intel as one of our top stock trades, despite it falling on great news? The latter part of that setup isn’t great, but the secular story is too promising and there’s too much support to ignore INTC near current levels.