To The Moon

After Wednesday (19 Feb) all -time high reached by S&P 500, we saw the trading session in a negative trend which saw S&P 500 losing 0.43%. We also saw major indices seeing sharp decline from the start due to consolidation efforts and profit-taking.

In the later afternoon, we saw session lows but there was persistent interest in buying during market dips helping to build a steady recovery. S&P 500 fell by as much as 1.0% before closing with a 0.43% decline.

Initially, decliners had a 2-to-1 lead over advancers at the NYSE, but this margin narrowed to a 4-to-3 ratio by the close.

Low Level Of Jobless Claims Suggest An Increase In Feb Nonfarm Payrolls Coming

We saw a continued low level of initial jobless claims which suggest economists may expect a solid increase in February nonfarm payrolls. The Philadelphia Fed report highlights a decrease in new order activity, while the prices paid and received indices increased from January.

We will be expecting on Friday, the flash February S&P Global U.S. Manufacturing PMI and flash February S&P Global U.S. Services PMI readings at 9:45 ET, followed by January Existing Home Sales and the final February University of Michigan Consumer Sentiment survey at 10:00 ET.

Only Three S&P 500 Sectors Managed To Close In The Green

The Energy sector came up as top performer with 0.97% gain which is driven by increasing oil prices, which reached $72.49 per barrel (+0.42, +0.6%).

But the Consumer Staples sector was affected by the disappointing fiscal Q1 and full-year guidance by $Wal-Mart(WMT)$ which lead to early selling pressure. The stock dropped by 6.5% to 97.21, marking it as the worst performer in the Dow Jones Industrial Average and the S&P 500 consumer staples sector, which declined by 0.96%.

Consumer Discretionary sector was dragged down by Carnival Corp (CCL) decline of 5.86% and Royal Caribbean Group (RCL) with 7.62% decline as well, Financials sector was also down by 1.55% dragged down by Morgan Stanley (MS) and JP Morgan Chase & Co (JPM) both losing more than 4%. This show the weakness of this sectors. And both sectors account for 25% of the S&P 500's market capitalization.

Note Yield Lower

The 10-year Treasury yield settled four basis points lower at 4.50%, while the 2-year yield remained unchanged at 4.27%. Treasuries showed little reaction to some relatively soft economic data. Weekly jobless claims increased more than expected, and the Philadelphia Fed Survey for February was weaker than anticipated.

Stocks To Watch

Walmart (WMT) experienced a sharp decline of 6.5% after revealing a softer financial outlook that fell short of analyst expectations. This news comes amidst investor concerns over the impact of tariffs on the U.S. economy and the Federal Reserve's interest rate trajectory. Walmart's projection for Q1 sales growth suggests per-share earnings between $0.57 and $0.58, below the consensus estimate of $0.65.

$Alibaba(BABA)$ saw its shares rise by 8.7% after reporting Q3 results that exceeded estimates. Investor Ryan Cohen, known for his involvement with GameStop (GME), increased his stake in Alibaba to approximately $1 billion, further boosting the stock's performance. Cohen's investment underscores the confidence in Alibaba's growth prospects, especially among meme-stock traders.

Celsius Holdings (CELH) dropped 6% following reports of its acquisition of Alani Nu for $1.8 billion. The deal, comprising cash and stock, marks Celsius's largest acquisition since its inception. This move comes as Celsius faces increased competition from Alani Nu and others, leading to a downgrade by TD Cowen.

$Palantir Technologies Inc.(PLTR)$ led a decline in enterprise software stocks, falling about 10% due to potential budget cuts by the Department of Defense. Despite the drop, Wedbush Securities suggested that these cuts might present more opportunities for Palantir. Other software stocks like Salesforce (CRM) and Workday (WDAY) also saw declines.

If we looked at the number of companies hiring for Palantir Foundry. According to available information, companies most likely to be hiring for Palantir Foundry roles include: Palantir Technologies itself, major consulting firms like Deloitte and Booz Allen Hamilton, system integrators like Soft Inc., and various companies in sectors like finance, healthcare, and government that utilize Palantir Foundry for data analysis and complex decision-making.

So the demand for PLTR software would be growing nicely in the commercial sector as healthcare and finance sectors are gearing for growth.

I am holding onto my position on PLTR as the technical have show that PLTR bulls have managed to defend the 26-EMA despite we are seeing a selloff yesterday after the two news of PLTR founder selling and potential government spending cut.

I believe the bulls would attempt for a uptrend but the level that need to clear is 106 which is near VWAP, if PLTR can maintain this level, we should be able to see another uptrend expansion from PLTR.

$IBM(IBM)$ continued its upward trajectory, marking its seventh consecutive session of gains. The stock closed up 0.16%, reflecting a strong 43.5% rise over the past year, outperforming the broader market. Analysts have mixed ratings on IBM, but the technical outlook remains bullish.

As we see some of the quantum computing stocks rising, we should be seeing more strong growth from IBM as I have written in one of my previous article with title : Why Quantum Computing Stocks Now. Here's Why

You will see the bullish trend presented by IBM and why this is one of the tech stocks to monitor and watch.

Rivian Automotive (RIVN) traded slightly higher after reporting record Q4 revenues and narrowing its adjusted EBITDA loss. The electric vehicle maker produced and delivered more vehicles than expected, aligning with its full-year guidance. Rivian's joint venture with Volkswagen and a loan from the Department of Energy provide additional capital for growth.

Summary

I think we should be seeing some of crypto stocks making a comeback, while tech stocks might be in mixed mode while waiting for next week Nvidia earnings, hence, I think profit taking might continue for some of the growth stocks, but some opportunities on the quantum computing stocks.

Appreciate if you could share your thoughts in the comment section whether you think market might make a small recovery before profit taking come strong again.

@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.