To The Moon

The stock market experienced a significant rally, marking the best week for the S&P 500 since the election. This surge was driven by positive perceptions of inflation trends and strong earnings results from major financial institutions. Political developments, such as a ceasefire agreement between Israel and Hamas and the upcoming presidential inauguration, also contributed to market optimism.

Stocks closed sharply higher Friday, sending the S&P 500 and Dow Jones Industrial Average to their biggest weekly gains since the week of the November presidential election. 

The Dow and S&P 500 rose 0.8% and 1%, respectively, while the Nasdaq Composite added 1.5%. The major indexes posted weekly gains for the first time in three weeks, as market participants prepare for the inauguration of Donald Trump on Monday, when the stock market will be closed to commemorate Martin Luther King Jr. Day.

Large-cap tech stocks recovered from steep losses yesterday and finished higher across the board on Friday. AI investor favorite Nvidia (NVDA) and EV maker Tesla (TSLA) both advanced 3.1%, while Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN) and Meta Platforms (META) also gained ground.

$NVIDIA(NVDA)$ was ranked as the top stock among the "Magnificent Seven" by Jefferies, outperforming its peers based on growth, sentiment, and return on invested capital. Microsoft (MSFT, Financial) was placed at the bottom of the list. Nvidia's strong performance is attributed to its leadership in growth and valuation metrics.

I believe that for long term, NVDA is still the top chips stocks to look out in 2025, I am holding my position and might add more as we see how NVDA Blackwell development goes.

S&P 500 Consumer Discretionary Led The Pack

The stock market ended the week with a rally, driven by mega-cap leadership and growth optimism. Speculation around upcoming executive orders from President-elect Trump added to the market's positive sentiment.

$Tesla Motors(TSLA)$ and other mega-cap stocks led the charge, with the Vanguard Mega-Cap Growth ETF (MGK) rising 1.4%. The consumer discretionary, information technology, and communication services sectors outperformed with gains of 1.71%, 1.65% and 1.10% respectively.

While real estate and health care lagged with losses of 0.04% and 0.67% respectively.

Note Yield Decline Fueling The Stock Market Rally

Despite a report from the Congressional Budget Office projecting a $1.9 trillion budget deficit for fiscal 2025, the market remained buoyant, aided by favorable December PPI and CPI reports that alleviated inflation concerns. Treasury yields fell, with the 2-year note yield dropping to 4.27% and the 10-year note yield to 4.61%, further fueling the stock market rally.

Stocks To Watch

$Intel(INTC)$ saw a significant rise of 9% following rumors of a potential takeover. Speculation includes Elon Musk as a possible buyer, according to a report from SemiAccurate. Citi analyst Christopher Danely expressed concerns about the outcome for Intel unless strategic changes are made. The takeover rumors have been circulating for months, adding intrigue to Intel's market movements.

Even with this rumors of potential takeover, INTC shares remain weak as it has just manage to reach above the long-term MA, but MACD does have an upside movement, but it is not strong enough.

So if the rumors were to come out untrue, then we could see INTC going back to it previous lows again as MTF is showing downward trend. I would avoid INTC.

Walmart (WMT) unveiled its new corporate campus in Northwest Arkansas, emphasizing sustainability and community development. The state-of-the-art facility represents a multibillion-dollar investment in associate experience and environmental leadership, with a phased opening planned through 2025.

Bank of America expressed optimism about PayPal (PYPL), McKesson (MCK), Antero Resources (AR), and East West Bancorp (EWBC), while adopting a bearish stance on Eli Lilly (LLY) and Target (TGT). The bank's analysis highlights potential growth opportunities and challenges for these companies.

$Robinhood(HOOD)$ gained 3.8% after Morgan Stanley named it a top pick, citing growth potential not yet reflected in its valuation. Analyst Michael Cyprys noted opportunities in the crypto industry and potential regulatory changes that could benefit Robinhood.

HOOD is showing potential as we have seen how Bitcoin prices have moved to 106,000 at one time, so we are also seeing sentiment from MACD and MTF, giving positive upside movement and also strong upward trend.

Summary

We are going to have the momentum coming back after a big week of earnings and we will have the Tuesday session with Trump administration coming onboard, we should be seeing opportunities in different sectors but we will need to monitor and do our own due diligence.

I am expecting a positive bias for the market when trading resume on Tuesday (21 Jan) after the Monday holiday.

Appreciate if you could share your thoughts in the comment section whether you think market would be in a positive momentum on Tuesday (21 Jan).

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.