Strong Earnings Results May Power Stocks Higher on April 25

US Trading

  • S&P 500 Futures Unchanged
  • 10-Year 2.525%
  • VIX 13.21
  • Dollar Index 98.27
  • Oil 66.16

International Trading

  • Japan Nikkei +0.48%
  • China Shanghai -2.43%
  • Hong Kong HSI -0.86%
  • South Korea KOSPI -0.48%
  • Germany DAX -0.13%
  • UK FTSE -0.50%

International Markets

China

China fell hard last night on concerns that stimulus measure may be pared back. The index fell below some essential support and is now at risk of falling below support around 3,000. We do not want to start to see international markets pull back. However, what may be more important is that the RSI is still trending higher.

China

South Korea (KOSPI)

In yet another blow to our returning growth narrative, South Korea saw its GDP contract in the first quarter by 0.3%.  For now, the trends continue to support the KOSPI rising in the future.

kopsi

We will need to continue to monitor these two markets, carefully.

US Markets

S&P 500 (SPY)

The S&P 500 is pointing to a flat opening. The chart of the E-mini S&P 500 futures would suggest that the index will break out today and rise above the old intra-day highs of roughly 2940.

S&P 500

Russell (RUT)

The Russell will get its chance also to break out and rise above resistance at 1,593. A break out could send the index to 1,640.

russell,

Facebook (FBWealth Strength IndexFB is Extremely Up and trending Up)

Facebook is trading higher this morning as expected, with the next significant level to watch for at $204.

Facebook, fb

Xlinix (XLNXWealth Strength IndexXLNX is Extremely Up and trending Up)

Xlinix is falling sharply following its results. Unfortunately, I do not know the stock very well. I know it is likely to be a drag on the sector today.

xlinix

Lam (LRCXWealth Strength IndexLRCX is Moderately Flat and trending Up)

Lam Research is jumping today after reporting better than expected results. The next level of resistance comes at $210. This is the second equipment maker to report solid results; yesterday it was Teradyne. It is a good sign the semi-space continues to see improvements.

lam, lrcx

Microsoft (MSFTWealth Strength IndexMSFT is Extremely Flat and trending Up)

Microsoft is trading above $130. I will need to some work on the chart, to figure out what is next.

microsoft, msft

3M (MMM)

3M is plunging after posting horrible results, and a drop to $193 seems likely.

3m

Amazon (AMZNWealth Strength IndexAMZN is Extremely Up and trending Up)

Amazon is rising this morning, and it is a big day for them with earnings tonight, and 2025 seems to be on the horizon.

amazon, amzn

-Mike

This article first appeared on Mott Capital.

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