Uber drops 7% post-earnings—why does Bill Baruch see this as a buying opportunity?
Mixed Markets Finish Strong: E-mini S&P & NQ Look for Support Amid Risk-On Sentiment
E-mini S&P (March) / E-mini NQ (March)
S&P, yesterday’s close: Settled at 6086.50, up 23.50
NQ, yesterday’s close: Settled at 21,763.00, up 92.75
Yesterday was mixed but finished strongly. There were some clear-cut winners and losers. Leading the day higher were names like NVDA, AVGO, and AMGN. The two chipmakers did not even report earnings but showed strength after GOOG further confirmed the AI arms race by raising 2025 capex expectations from $58 billion to $75 billion. GOOG finished -6.94% after also posting slower cloud revenues. AMD, UBER, TSLA, AMZN, and DIS weighed on the market, but we hold high hopes for AMZN’s earnings report after the bell today.
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Initial Jobless Claims came in a touch higher than expected at 219k versus 214k. Nonfarm Productivity for Q4 was lower than expected at +1.2% versus +1.5%, but Unit Labor Costs also missed at +3.0% versus +3.4% and were revised significantly lower for Q3 at +0.5% versus +0.8%. All in all, this should help keep some of the overnight rally in the U.S. Dollar contained while lifting Treasury futures; stoking risk-on. Traders also want to keep an ear to the ground for Fed speak; we find the most important coming from Fed Governor Waller at 1:30 pm CT. He has been more dovish lately and may be aligning himself with the new administration.
E-mini S&P and E-mini NQ futures have backed off their best levels from the overnight, and while the data may have encouraged risk-on, a consolidation from the two-day choppy rally could be in store as we approach the area of reversal from Friday and ahead of tomorrow’s Nonfarm Payroll report. Still, we remain cautiously Bullish in the Bias highlighted below and certainly would not step in front of this train; we do not have major three-star or rare major four-star resistance close to the current price action, as shown in our levels below. With a short-term trading mindset, we believe a pullback to major three-star support in the E-mini S&P at..
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