Market Overview

The following is a partial recap of the market analysis shared during today’s morning Discord call.

The U.S. market had a huge drop yesterday, with the S&P 500 diving from around 7480 points to almost 7320, following escalatory rhetoric from President Trump. We also saw average to disappointing numbers from the many earnings reports that came out, which painted a bleak image for the overall market. The software sector remains the sole ray of sunlight in the market, as it managed to squeeze out a move to the upside. Going into the day, U.S. government bond yields are rising again, making them a safe option relative to the riskier equity market. We also recommend keeping a close watch on the Dollar Index (DXY), as it will play a decisive role in the commodity market’s direction today.

Software

Software had a mixed bag of earnings yesterday, with Meta (META) and Qualcomm (QCOM) performing poorly on their earnings. At the same time, Microsoft (MSFT) managed to beat all expectations and is likely to have been a main contributor to the sector’s good performance today. We also see other stocks, such as ServiceNow (NOW), Adobe (ADBE), and Workday (WDAY), continue to perform well and go well past previous highs. Meanwhile, Oracle (ORCL) is still lagging behind and merely going sideways, which makes us believe that it’s likely to fall again if the market continues to drop.

Local Stocks

Boxer (BOX)

Boxer was upgraded by Absa to overweight, with a target price of R90, an increase of 17%. We saw a very similar action by Investec recently, which shows that there is interest in Boxer.

Glencore (GLN)

Glencore received a double upgrade today. One by Investec with a target price of R140, the other by Standard Bank, with a target of £6.6, a difference of 17% and 21% respectively. With a metal space somewhat in the green, a very diversified miner like Glencore should see benefits.

Earnings & Economic Data

Pre-Market Earnings

Mastercard (MA)

Mastercard is a multinational payment processor and payment card service provider, as well as the main competitor of Visa (V).

After-Market Earnings

Amazon (AMZN)

Amazon is a diverse American tech multinational, and a member of the ‘Mag-7’. The company operates in e-commerce, entertainment, A.I., advertising and more.

Apple (AAPL)

Apple is an American tech giant, famous for its phone and other personal electronics, though it deals in a variety of other tech fields, such as entertainment, software, and manufacturing.

Economic Data

Start your trading journey with us today!

We’re posting on TradingView, we’re posting on our blog… but the real magic happens in our client community where you can get access to our ideas as they develop. So, open your account and join us and start taking advantage of South Africa’s Top Broker for both Active Traders and Traditional Investors. We have a Discord server, with a Daily Morning Call at 08:30 (Monday – Friday), where our Trading Strategist shares market updates and posts information with the Community. If you are not trading with us yet, what’s stopping you?

*Please note that these trade ideas form part of a larger weekly plan and the value of financial products can increase as well as decrease over time, depending on the value of the underlying securities and market conditions. The risk of loss arising from trading in Contracts for Difference can be substantial. You should carefully consider whether such investments are suitable for you in the light of your circumstances and financial resources.