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NEWS
Next Move Rests On Nvidia Results

Source: Tenor.com

It was another difficult day for the tech sector, but Home Depot earnings helped buoy consumer-related stocks, which Walmart’s comments last week had hammered. All eyes are turning to Nvidia earnings tomorrow, with the stock going nowhere for the last few quarters despite “beat and raise” results. Fears are that most good news is already priced in, so tech stocks are under pressure. 👀 

Today’s issue covers what’s driving the market’s jitters, SMCI sliding under the Nasdaq filing deadline, and other noteworthy pops and drops. 📰

Here’s the S&P 500 heatmap. 5 of 11 sectors closed green, with consumer staples (+1.42%) leading and communication services (-1.48%) lagging.

Source: Finviz.com

And here are the closing prices: 

STOCKS
The Market’s Stumble Continues 😨 

Broader concerns about inflation, the economy, and the Trump administration’s latest policy changes are keeping bears in control of both equities, crypto, and almost every asset besides treasury bonds.

The Conference Board’s Consumer Confidence Index fell for the third straight month and posted its largest monthly decline since August 2021, as Americans expectations for inflation climbed. The brief optimism taking place following Trump’s initial election has faded in many markets, as his proposed policy decisions battle with reality. 🙃 

The U.S has been one of the strongest economies and markets in the world since the pandemic, but others like South Korea continue to cut rates to help buoy economic growth as they lower their growth forecasts. For Korea specifically, domestic demand recovery and export growth concerns remain the key issues.

Meanwhile in the U.S., Home Depot’s earnings renewed hopes about the housing market as the home improvement retailer posted positive comparable sales for the first time in over two years. Still, high interest rates and home prices continue to challenge the retailer’s business in a material way. 🏡 

The rest of the economy, like housing, is awaiting a catalyst to begin its next phase of growth. That’s caused the markets to stutter after failing to sustainably move above its December highs.

As the chart below shows, the Nasdaq 100, several of the U.S. major indexes, and many individual stocks are approaching their 200-day moving average. Technical analysts are watching how prices react to these levels closely to determine if sellers are going to push or if dip buyers step back in. 🧐 

Source: TradingView

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EARNINGS
Super Micro Slides Under The Deadline ⏳️ 

Super Micro Computer left the Nasdaq Exchange hanging until the exact last minute, but nonetheless, has reported its financials for the latest fiscal year and regained compliance on the exchange. 👍️ 

BDO, the company’s auditor, wrote, “In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at June 30, 2024,” and that the results are “in conformity with accounting principles generally accepted” in the U.S.

Super Micro said in a note from management as part of the filing that it had identified material weaknesses in internal controls over financial reporting, including IT issues, a lack of documentation over manual journal entries and insufficient controls to address segregation of staff duties. The company is hiring additional accounting and audit employees and upgrading its IT systems.

Shares rose 24% after the bell, with Stocktwits sentiment sitting in ‘extremely bullish’ territory. Bulls expect a short squeeze to continue following this news, while bears say the fundamentals remain uncertain as the AI landscape shifts rapidly. 🤷 

Source: Stocktwits

Meanwhile, all eyes are turning to Nvidia for its earnings report after the bell. As always, you can listen to the call live on Stocktwits. For now, you can view Daily Rip Live’s Shay Boloor’s views on how the stock is likely to react. 👀 

Source: Stocktwits & EarningsWhisper

STOCKS
Other Noteworthy Pops & Drops 📋️ 

IonQ ($IONQ -5%): The company, which manufactures high-performance quantum computers, is reportedly eyeing a mid-ticket merger and acquisition transaction. Bloomberg reported it’s in advanced talks to buy ID Quantique for $250 million.

Sempra Energy ($SRE -19%): The utility hit a one-year low after fourth-quarter results and downgraded guidance fell short of estimates.

Rocket Lab USA ($RKLB -8%): Bleecker Street Capital disclosed a short position on the stock, claiming the company has misled investors about the likelihood that its Neutron rocket will launch in mid-2025.

DigitalOcean Holdings ($DOCN +12%): Thec cloud service provider posted strong fourth-quarter earnings and revenue, with sales rising 13% YoY and management anticipating sustained growth into 2025.

BGC Group ($BGC +9%): Bank of America initiated coverage of the stock with a ‘Buy’ rating and a $16 price target, implying 72% upside from yesterday’s close.

American Tower Corp. ($AMT +7%): Fourth-quarter earnings and revenue topped estimates, with management seeing accelerating activity over the year.

Strategy ($MSTR -10%): Crypto-linked stocks took a tumble as Bitcoin dropped below $90,000. Strategy fell sharply even as it buys the dip.

Krispy Kreme ($DNUT -22%): The doughnut chain’s shares hit an all-time low after a major fourth-quarter earnings miss and weak full-year guidance. Revenue declined more than 10% YoY, with management lacking a clear plan to turn it around.

Lemonade ($LMND -16%): The insurance company’s earnings and revenue topped estimates, but its first quarter and full-year 2025 revenue guidance missed.

Sezzle ($SZZL +18%): The buy-now-pay-later company’s revenue grew 100% YoY, and earnings topped estimates, with strong guidance pumping the stock.

AMC Entertainment ($AMC +1%): The movie theater chain’s earnings matched estimates, while revenues beat by a hair. Global attendance of 62 million was up from 51.9 million a year ago, but the company continues to struggle to turn a profit on its core business. Lack of a core business turnaround story remains the issue.

Zoom ($ZM -8%): The video conferencing app provider’s fourth-quarter results exceeded expectations, but key user metrics and forward guidance remained soft.

WHAT’S ON DECK
Tomorrow’s Top Things 📋

Economic data: Fed Barkin Speech (8:30 am ET), New Home Sales (10:00 am ET), EIA Energy Inventories (10:30 am ET), Fed Bostic Speech (12:00 pm ET). 📊

Pre-Market Earnings: Lowe’s Companies ($LOW), Stellantis ($STLA), Anheuser-Busch InBev ($BUD), TJX Companies ($TJX), Icahn Enterprises ($IEP), NRG Energy ($NRG). 🛏️

After-Hour Earnings: Nvidia ($NVDA), Salesforce ($CRM), Snowflake ($SNOW), C3.ai ($AI), Marathon Digital ($MARA), Virgin Galactic Holdings ($SPCE), Beyond ($BYND), IonQ ($IONQ, Paramount Global ($PARA), Ebay ($EBAY), Teladoc ($TDOC). 🎧

Plus, Axon Enterprise’s President Josh Isner joined Stocktwits CEO Howard Lindzon for an exclusive post-earnings-call interview following the company’s better-than-expected quarterly results! Watch the reply down below. 🎧️ 

Links That Don’t Suck 🌐

💵 Billion Indians have no spending money – report

📱 AT&T and Verizon connect first cellphone-to-satellite video calls

🧑‍💼 CEO of Ben & Jerry’s parent company unexpectedly steps down

❌ Apple shareholders reject outside proposal to end DEI programs

🪫 Lucid CEO steps down; EV maker plans to more than double production in 2025

🤯 Couple forced to sit next to dead body on plane for 4 hours after woman dies mid-flight

🤝 Musk has inside track to take over contract to fix air traffic communications system

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