All eyes have been on big corporate earnings announcements this week, which continue to buoy this propped-up market.
If companies continue to surprise to the upside, look for the S&P 500 to remain in bull-market territory… even with some major economic announcements looming next week.
We’re watching to see if the S&P can break through resistance or if it will bounce back down – it’s something to consider as you make trading decisions in the coming week.
We’re Binge-Watching Netflix
The world’s biggest streaming company announced Tuesday that it lost nearly 1 million subscribers for the three-month period from April to June, marking the second straight quarter it lost customers. Still, that was less than the loss of 2 million the company had forecast. Netflix shares were up about 6% at $214 in midday trading Wednesday and kept creeping up yesterday as well.
The second-quarter results offer a new bull case for Netflix investors and a beacon of hope for other tech stocks. Losing subscribers doesn’t sound promising, but in comparison to a dismal first quarter, the consensus is that it’s “good enough.” Netflix shares rose on Wednesday, along with other tech stocks like Apple Inc. (AAPL) and Microsoft Corp. (MSFT).
It may seem like now’s the time to capitalize on what seems like a bounce in tech stocks, but we’re holding off on any recommendations for NFLX until we see how all of this shakes out amid rumors of an acquisition in the next year by Microsoft. We explore that possibility and how Netflix might continue to grow and add subscribers in a short on our Learning Markets YouTube channel. Click here to get the rest of the story.
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Hope Emerges on Wall Street as Stocks Rise
Green shoots of hope are emerging on Wall Street as stocks rebound in the run-up to the Fed’s monetary policy decision next week.
Along with the FOMC statement on Wednesday, we’ll see the Consumer Confidence Index announced Tuesday, a prediction of consumer spending based on household consumption and saving. We’re interested in this score to see how consumer staple stocks like Walmart Stores Inc. (WMT), Procter & Gamble (PG), and Dollar General (DG) , will fare.
We’ll get GDP numbers and jobless claims on Thursday, which could boost the market if the numbers meet or exceed expectations. Plus, the core PCE price index will come in Friday. Another tick or two down could signal less inflation and feed those green shoots of hope in the market.
Speaking of, be sure not to miss our latest YouTube livestream, Are You Missing the Bounce in the Stock Market? The stock market is bouncing up from its lows. Learn how you can capitalize on the bounce, or if it’s just another fake out.
When you need more in-depth information about stocks, market trends, options trading, and more, our Learning Markets YouTube channel has what you’re looking for. It’s free to subscribe and is an indispensable resource during the ups and downs of earnings and reporting season.
Sincerely,
John Jagerson and Wade Hansen
Editors, Trading Opportunities
