Dow Earnings In Flight, Nasdaq Next
Following Pepsico and McDonalds numbers this morning, and with Microsoft coming up today after the close, where do markets stand?
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Earnings
Pepsico ($PEP) reported today - this is a Nasdaq stock which is around all time-highs; the stock is up on the news but sellside analyst price targets sit only a little above the current price. The PEP chart to us looks extended; any slide in PEP would add to the potential for correction in the Nasdaq at large. McDonalds is down on strong earnings and raised guide, again a chart which was looking toppy. Yesterday we had earnings from one of the stocks we cover in our Tech Select substack - Tenable TENB 0.00%↑ - which printed perfectly reasonable earnings but the stock is currently down some 21% on yesterday’s close. This is lining up with our expectation of some short-term weakness in markets as earnings come in (the opposite to what happened with Q4 earnings printed in Q1). Markets are extended and looking for a catalyst to take profits - we think earnings will provide that. We also maintain our expectation in a larger-degree move up to new all time highs, so any correction in the coming days we see as a dip to buy.
Let’s look at the S&P, the Nasdaq, the Dow and the Russell in depth.