The Each day Breakdown seems to be on the earlier championship seasons for skilled Philadelphia sports activities groups and the stats are…not nice.
Monday’s TLDR
Earnings are nonetheless in focus
CPI report is on watch
META’s document win streak
Weekly Outlook
Is there a inventory market curse in Philadelphia? Whereas hundreds of thousands are celebrating the Eagles’ victory final evening, others have identified an attention-grabbing coincidence for markets to underperform when the Metropolis of Brotherly Love secures a championship.
For example, there’s the 1929 inventory market crash when the Philadelphia Athletics received the World Collection, together with the 2008 monetary disaster when the Phillies received the World Collection. Then there’s the final Eagles’ Tremendous Bowl victory in 2018, when the S&P 500 had its worst yr since 2008.
Do the championship winners have an effect on inventory markets? In fact not! And it wouldn’t be advisable to make funding choices primarily based on sports activities championships. However the historical past certain is attention-grabbing.
As for this week, a number of notable earnings stand out. They embody Coca-Cola and Shopify on Tuesday, Reddit and Robinhood on Wednesday, and Coinbase on Thursday.
As for financial information, a number of notable stories stand out. They embody the CPI report on Wednesday and retail gross sales on Friday. These stories will give us the most recent replace on inflation and the way the buyer is doing.
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The setup — McDonald’s
McDonald’s reported earnings this morning, lacking on income expectations and reporting roughly in-line earnings outcomes. Regardless of the blended headline figures, shares are inching greater in pre-market buying and selling.
Bear in mind, the inventory will commerce primarily based on the corporate’s outcomes, in addition to administration’s convention name.
The current inventory motion has been promising, as MCD cleared downtrend resistance (the blue line) final week. Nonetheless, $300 has been a key resistance degree for the inventory for a number of years.
MCD is buying and selling slightly below $300 in pre-market buying and selling. Control this degree in the present day and this week. If shares can clear this space, extra bullish momentum might ensue.
On the flip aspect, if shares are unable to clear $300, then this degree might stay resistance and momentum might wane.
Choices
For some traders, choices may very well be one various to invest on MCD. Bear in mind, the chance for choices patrons is tied to the premium paid for the choice — and shedding the premium is the total threat.
Bulls can make the most of calls or name spreads to invest on additional upside, whereas bears can use places or put spreads to invest on the good points tapering off and MCD rolling over.
For these trying to be taught extra about choices, contemplate visiting the eToro Academy.
What Wall Road is watching
AMZN – Shares of Amazon fell about 4% on Friday after the corporate reported earnings. Regardless of beating on earnings and income expectations, the agency’s cloud outcomes have been barely beneath analysts’ expectations, whereas its outlook was barely beneath estimates as nicely. Take a look at the charts for Amazon.
META – On Friday, Meta prolonged its profitable streak to a powerful 15 consecutive classes. Shares are up virtually 17% throughout this stretch because the inventory continues to chug greater. The final down day for Meta was on January sixteenth.
Disclaimer:
Please observe that resulting from market volatility, a number of the costs could have already been reached and situations performed out.
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