March 29, 2024

Daily Wrap

DJIA -49.84 (-0.36%) to 13,860.58; S&P 500 -3.85 (-0.26%) to 1,498.11; NASDAQ -0.18 (-0.01%) to 3,142.13

Today’s action all maintained in a narrow range as the market’s seem to be waiting for tomorrow’s non-farm payroll report.  We had Unemployment claims come in slightly above expectations but after factoring in the previous two weeks wide beats it all averages out to still be positive as of late.  We had other economic data and as always you can visit the Event’s Calendar for the release of economic data, scheduled meetings and other news that could move the market.

With such a narrow day it is not surprising to also not have too many great stories to tell of the day but there was some interesting movements and as always during earnings season there is something to talk about.  One big newsworthy story I saw was The Department of Justice announced it was suing to prevent Anheuser-Busch InBev’s (BUD) from buying a controlling stake of Grupo Modelo (GPMCF).  This news sent BUD down 5.88% for the day but losing even more was Constellation Brands (STZ) who was caught up in some “pin action”.  STZ is in talks to purchase the remaining half of Crown Import it owns with Grupo Modelo.  This DoJ action puts that in jeopardy and hence why STZ closed down 17.39%.

Facebook (FB) started down today after reporting earnings that beat analysts estimates on both EPS and revenue but analyst comments were somewhat mixed after the report.  I saw only downgrades except for two firms (Cantor & JP Morgan) who didn’t upgrade the name but both put out positive comments and JP Morgan raised the price target to $35.  I think FB needs to rest and consolidate and if it can then I might look to it for a trade opportunity.  As a reminder that you can review the list I compile each day as well as an archive of past days in the Upgrades/Downgrades section.

A name you will not see on the upgrades and downgrades list but had many firms up their price targets is one that we have been following for a while, Qualcomm (QCOM).  QCOM closed below the open but still gained nearly 4% on an earnings report which beat current quarters estimates and raised guidance.  Wall Street price targets were raised to between $80-83 which represents much higher levels from here.

Sorry no charts for tonight.  As far as the markets are concerned we are still hovering around support with the 20 day SMA making its way higher.  I ultimately believe we are likely setting up for a larger correction which provides a better opportunity but in the meantime I will continue with the same stance of allocating slightly less capital to new trades.  One of those new trades may be QCOM with EPS out of the way.  I will be watching the next day or two of trading to isolate opportunities.

Comments are closed.