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A weaker-than-expected jobs report sparked a widespread market rally in the last session of the week, as traders increased expectations on potential interest rate cuts later this year.

Stocks Rally As Jobs Report Rekindles Rate Cut Hopes, Apple Rockets, Bitcoin Soars Above $61,000: What&#39;s Driving Markets Friday?

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Wage Growth Slows – Stock Market Celebrates, Five Real Reasons Apple Is Running Up

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A weaker-than-expected jobs report sparked a widespread market rally in the last session of the week, as traders increased expectations on potential <a href="https://www.benzinga.com/topic/interest-rates">interest rate cuts later this year</a>.
In April, nonfarm payrolls expanded by 175,000 jobs, marking a significant slowdown from March&#8217;s robust pace of 315,000 and notably falling short <a href="https://www.benzinga.com/economics/macro-economic-events/24/05/38612469/job-market-cools-in-april-payrolls-miss-forecasts-wages-rise-less-than-expected">of the anticipated 238,000</a>.
Unexpectedly, the unemployment rate edged higher, while average hourly earnings softened more than forecasted, both indicating a slowdown in momentum within the labor market.
On a separate note, the latest surveys on service sector activity revealed an unexpected contraction in April, as reported by <a href="https://www.benzinga.com/economics/macro-economic-events/24/05/38616058/services-sector-activity-contracts-business-is-slowing-as-stocks-bonds-trim-gains">the Institute for Supply Management.</a>
Chicago Fed President Austan Goolsbee welcomed results from the jobs report, emphasizing that it boosts confidence that the economy is not overheating and inflation is not reaccelerating. 
The S&amp;P 500 surged by 1.2%, pushing the overall weekly performance into positive territory. The Nasdaq 100 experienced a remarkable 2% surge, marking its most robust performance in over two months. Among tech giants, Apple Inc. made headlines, rising nearly 7% following the announcement of a record-breaking $110-billion buyback program. The Cupertino, California-based company also beat both earnings and revenue estimates last quarter. 
Blue chips and small-cap stocks also rose, with the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) up by 0.9%.
Yields experienced a broad decline, with the two-year Treasury yield now settling at 4.8% after reaching a peak of 5.05% earlier in the week. 
The overall optimistic risk sentiment spurred gains in more speculative areas of the market, leading to a rise in cryptocurrencies across the board. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) surged by 4.8%, surpassing the $61,000 mark.
Read also: <a href="https://www.benzinga.com/24/05/38616039/why-bitcoin-spiked-above-62-000-following-the-april-jobs-report">Why Bitcoin Spiked Above $62,000 Following The April Jobs Report</a>
<h3 class="wp-block-heading">Friday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>17,881.25</td>
<td>1.9%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>38,677.36</td>
<td>1.2%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,126.34</td>
<td>1.2%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,033.91</td>
<td>0.9%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1:30 p.m. EDT</figcaption></figure>
The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 1.2% to $511.54, the&nbsp;SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) rose 1.2% to $386.42 and the tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rocketed 1.9% to $435.11, according to&nbsp;<a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.&nbsp;
Sector-wise, the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, up 2.8%, followed by the Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>), up 0.8%. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) was the major laggard, down 0.7%.
<h3 class="wp-block-heading">Monday&#8217;s Stock Movers</h3>
<ul>
<li>Amgen Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMGN#NASDAQ">AMGN</a>) rose over 13% following upbeat quarterly results. </li>
<li>Other stocks reacting to earnings were Booking Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BKNG#NYSE">BKNG</a>), up about 4%, MercadoLibre Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MELI#NASDAQ">MELI</a>) up 11%, EOG Resources Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EOG#NYSE">EOG</a>) down 1.6%, Monster Beverage Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>) up 1.9%, Coinbase Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>) down 4%, Expedia Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EXPE#NYSE">EXPE</a>) down over 13%, Fortinet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTNT#NASDAQ">FTNT</a>) down over 8%, Block Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SQ#NASDAQ">SQ</a>) mostly flat, Coterra Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CTRA#NYSE">CTRA</a>) up over 3%, The Hershey Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HSY#NYSE">HSY</a>) up 1.3%, Cheniere Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LNG#NYSE">LNG</a>) down 1.6%, CBRE Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CBRE#NYSE">CBRE</a>) down 1%, Corebridge Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRBG#NYSE">CRBG</a>)</li>
</ul>
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38590992/sell-in-may-and-go-away-does-the-trading-strategy-hold-up-in-election-years">Sell In May And Go Away: Does The Trading Strategy Hold Up In Election Years?</a>
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Stocks Rally As Jobs Report Rekindles Rate Cut Hopes, Apple Rockets, Bitcoin Soars Above $61,000: What's Driving Markets Friday?

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US indexes are higher following a weak jobs report, which has added to hopes of Fed policy easing. Strong earnings from Apple may also be lifting market sentiment.

In April, the U.S. economy added 175,000 jobs, falling short of expectations and down from the 315,000 jobs <a href="https://www.benzinga.com/economics/macro-economic-events/24/05/38612469/job-market-cools-in-april-payrolls-miss-forecasts-wages-rise-less-than-expected">added the previous month. </a>
Surprisingly, the unemployment rate inched up from 3.8% to 3.9%, although maintaining a level below 4% for the 27th consecutive month—a streak not seen since the late 1960s.
Nominal average hourly earnings growth slowed to 0.2% in April, slightly below expectations and a decrease from the 0.3% growth rate seen over the previous six months. Year-on-year, nominal wage growth decreased to 3.9%, failing to meet the anticipated 4%.
Overall, the April jobs report was cooler than expected, suggesting a shift towards a better rebalance between labor supply and demand, and indicating a slowdown in economic growth following several robust quarters. 
Notably, this subdued jobs report has rekindled expectations for the Federal Reserve to ease monetary policy, with traders now pricing in a 71% probability of an interest rate cut by September, according to CME Group Fed Watch Tool. 
Yields on Treasury bonds collapsed, with the 2-year yield dropping from 4.89% to 4.79%. Long-term bonds rose, with the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) up 0.6%. For the stock market, this has been another sigh of relief, effectively dispelling concerns over a tightening of Federal Reserve policies. The tech-heavy Nasdaq 100, as tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), rallied 1.5%. 
Economists and analysts have begun to dissect the implications of this data for the markets and Federal Reserve policy.
<h3 class="wp-block-heading">There&#8217;s Little To Cheer On A Soft Jobs Report</h3>
&#8220;As I feared after Chair Powell&#8217;s presser on Wednesday, he probably already knew that a softer Job Report was on our way today,&#8221; Andrea Lisi, CFA stated. The expert expressed concerns about a potential economic downturn following the April jobs data, emphasizing that &#8220;this economic cycle is showing signs of mirroring many others, with a hard landing potentially on the horizon.&#8221; Lisi underscored the importance of the labor market, warning that &#8220;The average American&#8217;s financial health is far from robust, a situation that should raise serious concerns.&#8221;
Craig Shapiro, macro advisor for LaDuc Trading, also offered a more cautious perspective on the April&#8217;s jobs report, suggesting that the report&#8217;s implications might not be as positive as some might hope. &#8220;This is not unexpected weakness which is what Powell said he would need to see in order to commence cutting,&#8221; Shapiro explained. &#8220;I don&#8217;t believe this is reason to get excited about risk assets. I believe the opposite,&#8221; he stated. Shapiro highlighted that the economy is slowing down and the labor market has peaked, which is expected to gradually decline, but the sticky inflation will make the Fed&#8217;s job to cut more difficult. 
<h3 class="wp-block-heading">Goldilocks Is Back, And Markets Should Love It</h3>
Mohamed El Erian, chief economic adviser at Allianz, presented a more positive spin, describing the jobs report as a &#8220;Goldilocks&#8221; scenario. He stated, &#8220;Still solid monthly employment creation of 174,000.&#8221; Lower wage growth of 0.2% (month-over-month) and 3.9% (annual). El Erian also highlighted the sustained labor force participation from the previous month, which he believes the Federal Reserve and markets will find appealing.
Also Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report, described the report as a &#8220;Goldilocks payrolls report,&#8221; noting the cooling labor market as a positive development. &#8220;Finally, some weakness in the labor market to take pressure off bond yields and maybe accelerate rate cut expectations,&#8221; he observed. Tentarelli thinks that if inflation remains contained and job data continues to show moderation, the Federal Reserve might consider an initial rate cut in September. 
Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, interpreted the report as favorable for the stock market. He remarked that &#8220;the market should love this report&#8221; due to the easing wage inflation pressures. Zaccarelli emphasized that &#8220;as long as the Fed maintains an easing bias,&#8221; the market outlook remains optimistic, predicting potential rate cuts within the year.
<h3 class="wp-block-heading">Higher Chances of Fed Easing</h3>
John Lynch, chief investment officer for Comerica Wealth Management,&nbsp;believes the data will bring monetary accommodation back into consideration, particularly as &#8220;the burden of proof is on corporate profits to exceed forecasts, providing fundamental support for equities in the coming months.&#8221;
According to Charlie Ripley, senior investment strategist for Allianz Investment Management, data from the April labor market report has softened the market&#8217;s perception of the U.S. economy&#8217;s strength and reopened discussions about potential rate cuts this year. He believes the Federal Reserve will view this data favorably, as it could alleviate some of the pressure associated with maintaining a higher-for-longer interest rate policy.
Read now: <a href="https://www.benzinga.com/markets/equities/24/05/38607876/steve-jobs-wasnt-a-fan-but-apples-record-stock-buyback-is-so-massive-it-dwarfs-valuations-of-boe">Steve Jobs Wasn&#8217;t A Fan, But Apple&#8217;s Record Stock Buyback Is So Massive It Dwarfs Valuations Of Boeing, Starbucks, eBay And 415 Other S&amp;P 500 Companies</a>
Image generated using artificial intelligence via Midjourney.

Jobs Growth Slows, Unemployment Ticks Up, Wage Increase Cools: 'The Market Should Love This Report'

To gain an edge, this is what you need to know today.
<img alt="" src="https://thearorareport.com/wp-content/uploads/2024/05/2024-05-03_08h41_09.png" style="height:341px; width:624px" />
<h3>Reduce Hedges And Deploy Cash</h3>
Hedges are profitable.&nbsp;It is time to take more partial profits.&nbsp;It is time to deploy slightly more cash.&nbsp;&nbsp;
<h3>Wage Growth Slows</h3>
Please <a href="https://thearorareport.com/chart-analysis-stock-market-wage-growth-slows-apple-running-up-spy-mc-05032024">click here</a> for an enlarged chart of SPDR S&amp;P 500 ETF Trust (ARCA:SPY) which represents the benchmark stock market index S&amp;P 500 (SPX).
Note the following:
<ul>
<li>The chart shows that the stock market may attempt to break out of consolidation and run towards the resistance zone.&nbsp;RSI on the chart shows that the stock market is set to run up.</li>
<li>There is aggressive buying in stocks, bonds, gold, silver, and bitcoin on the jobs report.&nbsp;Investors are celebrating slower wage growth and lower than expected job creation. Here are the details:
<ul>
<li>Non-farm payrolls came at 175K vs. 250K consensus.</li>
<li>Private non-farm payrolls came at 167K vs. 175K consensus.</li>
<li>Average hourly earnings came at 0.2% vs. 0.3% consensus.&nbsp;On an annualized basis, this wage growth is 2.4%.&nbsp;This is good news on the inflation front.</li>
</ul>
</li>
<li>With Powell itching to cut rates, this report is going to give Powell the ammunition he needs.</li>
<li>The stock market always has crosscurrents.&nbsp;One of the negatives from this jobs report is that with slowing jobs growth and slowing wage growth, the consumer may stop spending excessively.&nbsp;The U.S. economy has stayed out of recession because of excessive consumer spending.&nbsp;If the consumer stops spending excessively, earnings growth will be lower than the current Wall Street consensus.&nbsp;In turn, it will hit the stock market negatively.</li>
<li>Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) earnings were roughly inline with the consensus but worse than whisper numbers.&nbsp;Here are the two most important pieces of data:
<ul>
<li>Q2 iPhone revenue was $45.96B vs. $51.3B last year.</li>
<li>China sales are down 8%.</li>
</ul>
</li>
<li>In The Arora Report analysis, Apple is running up and creating positive sentiment in the entire stock market for the following reasons:
<ul>
<li>Apple announced the largest buyback in corporate history. It is $110B.</li>
<li>In his comments, Tim Cook&rsquo;s tone was more optimistic than we have heard thus far.</li>
<li>Cook is optimistic on China in spite of the data showing reasons to not be optimistic.</li>
<li>In a departure from Apple&rsquo;s standard practice, Apple gave guidance for the June quarter.&nbsp;Apple projects low single digit growth.&nbsp;Consensus for sales is $82.89B.&nbsp;It appears Apple departed from its standard practice because Cook sees the need for him to do everything he can to run up AAPL stock.</li>
<li>An AI announcement is likely on June 10 at WWDC.</li>
</ul>
</li>
<li>Amgen Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amgn#NASDAQ">AMGN</a>), a component of DJIA, is running up on the company teasing about good data from its weight loss drug from Phase 2 and plans to move to Phase 3.&nbsp; The move up in AMGN is helping DJIA run up.&nbsp;Investors are selling stocks of competitors Eli Lilly And Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lly#NYSE">LLY</a>) and Novo Nordisk A/S (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nvo#NYSE">NVO</a>).</li>
</ul>
<h3>Buy Zones And Buy Now Ratings&nbsp;</h3>
Consider continuing to hold good strategic positions.
Consider lightly buying, if underinvested, when stocks and ETFs fall in the buy zones.&nbsp; The Arora Report&#39;s Complete Model Portfolio updates with new zones are coming.&nbsp;&nbsp;
<h3>Nibbling</h3>
Consider not nibbling at this time.&nbsp;
Nibbling refers to buying very small quantities, often in existing long-term positions with the intention of exiting these additions in the short term.&nbsp; It is similar to trade around positions but without specific signals.
<h3>Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in Amazon.com, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>), Alphabet Inc Class C (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>), Meta Platforms Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>), Microsoft Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>), NVIDIA Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>), Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>),&nbsp;and AAPL.
In the early trade, money flows are positive in S&amp;P 500 ETF (SPY) and Invesco QQQ Trust Series 1 (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>).
<h3>Momo Crowd And Smart Money In Stocks</h3>
The momo crowd is aggressively buying stocks in the early trade.&nbsp;Smart money is buying stocks in the early trade.
<h3>Gold</h3>
The momo crowd is buying gold in the early trade.&nbsp;Smart money is buying gold in the early trade.
For longer-term, please see gold and silver ratings.
The most popular ETF for gold is SPDR Gold Trust (ARCA:GLD). The most popular ETF for silver is iShares Silver Trust (ARCA:SLV).&nbsp;
<h3>Oil</h3>
The momo crowd is buying oil in the early trade.&nbsp;Smart money is buying oil in the early trade.
For longer-term, please see oil ratings.
The most popular ETF for oil is United States Oil ETF (ARCA:USO).
<h3>Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) has run up above $60,000 on weaker jobs report.
<h3>Protection Band And What To Do Now</h3>
It is important for investors to look ahead and not in the rearview mirror.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp;The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp;If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp;When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp;High beta stocks are the ones that move more than the market.
<h3>Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of seven year duration or less.&nbsp;Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter">Generate Wealth Newsletter</a>.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

Activity in the services sector experienced a sharp slowdown in April, cooling more than expected and showing the first <a href="https://www.benzinga.com/topic/macro-economic-events">decline since December 2022.</a>
What Happened: After 15 straight months of growth, sentiment in the services sector activity entered into contraction last month, according to the Institute for Supply Management (ISM).
<h3 class="wp-block-heading">April ISM Services PMI Report: Key Highlights</h3>
<ul>
<li>The overall ISM Services PMI fell to 49.4%, marking a 2 percentage points decline from March's 51.4% and missing the expected growth to 52%. </li>
<li>The subindex for Business Activity fell to 50.9% in April, marking a significant drop of 6.5 percentage points from March&#8217;s 57.4%.</li>
<li>The subindex for New Orders continued to expand for the 16th consecutive month, but a slower pace, declining from March&#8217;s 54.4% to 52.2% in April, and missing expectation of 54.5%. </li>
<li>The subindex for Prices Paid rose sharply from 53.5% to 59.2%, indicating worsening price pressures felt by services providers, and missing the expected rise to 55%. </li>
<li>The subindex for Employment tumbled from 48.5% to 45.9%, missing the predicted 49%. </li>
</ul>
Anthony Nieves, chair of the Institute for Supply Management Services Committee, blamed the decline in the composite index in April on &#8220;lower business activity, slower new orders growth, faster supplier deliveries and the continued contraction in employment.&#8221; 
&#8220;Survey respondents indicated that overall business is generally slowing, with rates varying by company and industry,&#8221; Nieves says. &#8220;Employment challenges continue to be primarily due to difficulties in backfilling positions and/or controlling labor expenses. The majority of respondents indicate that inflation and geopolitical issues remain concerns." 
<h3 class="wp-block-heading">Market Reactions: Stocks, Bonds Trim Gains</h3>
Following the ISM Services PMI data, market reactions saw stocks and bonds trimming their early morning gains, influenced by a <a href="https://www.benzinga.com/economics/macro-economic-events/24/05/38612469/job-market-cools-in-april-payrolls-miss-forecasts-wages-rise-less-than-expected">cooler-than-expected jobs report.</a> 
Traders interpreted the services gauge negatively as it signaled a contraction in overall activity along with higher prices paid, suggesting a stagflationary scenario characterized by reduced growth and persistently high inflation.
The tech-heavy Nasdaq 100, as tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), softened its rally from 2.1% to 1.6% on the day. The S&amp;P 500, as monitored through the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), eased from an intraday high of 5,139 points to 5,110 points. 
Treasury yields also trimmed declines with the 2-year yield recovering from a decline of over 10 basis points to a smaller one of 5 basis points. The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) was up 0.5% at 10:20 a.m. in New York, scaling back daily gains. 
Now Read: <a href="https://www.benzinga.com/news/large-cap/24/05/38598252/shocker-of-2024-utilities-overtake-tech-sector-10-stocks-behind-the-shift">Shocker Of 2024 &#8211; Utilities Overtake Tech Sector — 10 Stocks Behind The Shift</a>
Image: Midjourney

Services Sector Activity Gauge Contracts, Stocks, Bonds Trim Gains: 'Business Is Slowing'

Good Morning Traders! In today&#39;s Market Clubhouse Morning Memo, we will discuss SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META, and TSLA.
Our proprietary formula, exclusive to Market Clubhouse, dictates these price levels. This dynamic equation takes into account price, volume, and options flow. These levels are updated every day and shared with all Clubhouse Members, prior to the opening of the market.
We recommend closely monitoring these stocks, and be prepared to leverage potential breakouts or reversals. As always, stay alert and ready to adjust your tactics based on the market&#39;s pulse to optimize your trading gains. Now, let&#39;s dive into the stock analysis:
SPDR S&amp;P 500 ETF Trust
(NYSEARCA: SPY) The SPY is currently auctioning around our level of 506.71. For the bulls, we&#39;d like to see a push higher initially to 507.52. If the price action remains strong above 507.52, we&#39;re looking for buyers to bring the price to our support level of 508.34. If 508.34 can hold up during regular trading hours, we&#39;d expect to see a push up above to 509.49. Our high bull target on the day for SPY is 510.95.
However, if 506.71 cannot sustain as a support level, the downward pressure might see bears driving the price to 505.32. If bearish momentum continues, the next key level to watch is 503.95. Breaking past this could lead to a test of stronger support at 502.85. If the selling intensifies, our bearish target for the day is set at 501.74.
Invesco QQQ Trust Series 1
(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>) The QQQs are currently auctioning around our key level of 429.40. For the bulls, maintaining levels above 430.16 is crucial. If this level can be held as support without failing, we&#39;re looking for 431.82 to be claimed as strong support. Continued buying strength could bring our level of 432.84 into play. If the auction is strong today, we&#39;re likely to see a test higher at 433.64. Our high bull target for the Q&#39;s today is 434.76.
On the other hand, if the auction struggles to hold above 429.40 during regular trading hours, bears might take control and push lower to 427.32. Observing weakness at this level could lead the bears to test 425.77. If sellers remain persistent, we anticipate a further decline to 424.04. Should this level not hold, our bear day&#39;s target is 422.16.
Apple Inc. 
(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) Apple is currently auctioning around our level of 182.96. For the bulls, maintaining 182.96 as support is key. We&#39;re looking for an initial push to 183.38. With continued bullish momentum, the next target is 184.09. If buying activity sustains, we might see an aggressive push to our high bull target for the day at 184.96.
Conversely, if 182.96 fails as support during regular trading hours, the bears might drive the price to 182.27. With sustained selling, the next levels to watch are 181.25 and 180.60. Should selling pressure break these supports, our low bear target for the day for Apple is 180.10.
<h3>Microsoft Corp. </h3>
Microsoft&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>) is currently auctioning around our level of 399.21. For the bulls, holding the auction above 400.30 is essential, aiming next for 401.39 to be sustained as support. If this is achieved, bullish momentum might drive the price towards 402.74. Sustaining buyer interest could push Microsoft&#39;s stock to our high bull target of 404.92.
Should the support at 399.21 fail to hold, bears might test lower levels starting at 398.38. A breakdown here could lead to a further test at 397.65. If bearish trends continue, the next critical support is at 395.68. Our bearish end-of-day target for Microsoft is 394.46.
<h3>NVIDIA Corporation</h3>
NVIDIA&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) is currently auctioning around our key level of 865.62. Bulls are expected to push the price to 877.25 and establish it as a firm area of support. From there, the upward targets are 882.97 and 890.55, with an ultimate high bull target for the day at 898.13.
If the support at 865.62 cannot hold, bears may look to push lower to 858.43. A breakdown here might lead to further declines to 852.61 and 846.80. If bearish momentum is sustained, our low target for the day is set at 842.42.
<h3>Alphabet Inc Class A</h3>
Alphabet&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>) is currently auctioning around our level of 167.04. Bulls need to maintain this level as support, aiming to push higher to 169.34. If buying interest continues, the price might rally to our high bull target of 171.14.
If 167.04 fails as support during regular trading hours, bears may lower the price to 165.41. If this level breaks down, further tests at 163.79 might occur. In a scenario where selling intensifies, our bearish target for Alphabet on the day is 161.79.
<h3>Meta Platforms Inc</h3>
Meta&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>) is currently auctioning around our level of 441.35. Bulls aim to hold this level as support, pushing the price higher to 446.90. If bullish sentiment remains strong, the next targets are 450.55 and our high bull target of 453.45.
If 441.35 fails to hold as support, the bears might push the price lower to 436.87. Persistent selling could see further declines to 432.39. If these levels cannot be maintained, our bear day&#39;s low target for Meta is 429.01.
<h3>Tesla Inc.</h3>
Tesla&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) is currently auctioning around our key level of 179.79. Bulls aim to push the price to 182.53. If bullish momentum holds, further increases to 184.10 and 186.10 are possible, with a day&#39;s high target of 189.22.
If 179.79 fails to hold as support, bears could lower the price to 176.34, followed by 172.61. If this level breaks, our low bear target for Tesla on the day is 169.70.
Final Word:&nbsp; As we wrap up today&#39;s trading session, it&#39;s important to stay alert for several pivotal economic reports that are poised to influence market dynamics. At 8:30 AM ET, we&#39;ll see the release of the Non-Farm Payrolls for April, a critical measure of employment growth outside the agricultural sector, which has historically been a significant market mover. Coupled with this, the Average Hourly Earnings data will provide insights into wage trends, an essential indicator for assessing inflation pressures.
Furthermore, at 10:00 AM ET, the ISM Services Index will be published, offering a snapshot of the non-manufacturing sector&#39;s health, which makes up the majority of the U.S. economy. This report includes sub-indices such as Prices Paid, Employment, and New Orders, each of which can provide valuable clues about the future direction of economic activity and policy adjustments. The Prices Paid component, in particular, is a closely watched indicator for inflationary trends.
Given these significant data releases, we anticipate a heightened level of volatility in today&#39;s trading session. Traders should be prepared for potential swings and ensure that they are leveraging sound risk management strategies. Today&#39;s data could not only shape market sentiment for the day but also set the tone for the upcoming weeks, especially in terms of how the Federal Reserve might interpret these indicators in the context of their monetary policy decisions.
The Morning Memo is curated by RIPS, a pro trader with years of experience in equities, options, and futures trading. RIPS is at the heart of the exclusive Market Clubhouse community, offering his insights, expertise, and real-time mentorship.
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For a limited time during our special promotion, you can join RIPS and get a full access pass to Market Clubhouse for 7 full days for just $7. Check it out at <a href="https://marketclubhouse.club/7Days/" title="https://marketclubhouse.club/7Days/">https://marketclubhouse.club/7Days/</a> where you can trade live with him and tap into his wealth of knowledge and experience. You can also catch Rips on his live day trading streams every Monday-Friday at 8 am EST on the Market Clubhouse YouTube channel: <a href="https://www.youtube.com/@MarketClubhouse" title="https://www.youtube.com/@MarketClubhouse">https://www.youtube.com/@MarketClubhouse</a>.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

GOOGL

Market Clubhouse Morning Memo - May 3rd, 2024 (Trade Strategy For SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META And TSLA)

Stocks look set to carry forward the upward momentum on Friday <a href="https://www.benzinga.com/news/earnings/24/05/38599545/apple-q2-earnings-beats-muted-forecast-on-services-mac-strength-installed-base-at-fresh-record-cupe">amid some earnings cheer, </a>although a tinge of nervousness is evident ahead of the all-important non-farm payrolls report. A strong labor market would give the nod for the Federal Reserve to stay &#8220;higher for longer,&#8221; and a wage inflation measure from the report will also be on investors&#8217; radar. Also, a national non-manufacturing activity reading is due for the day.
Apple, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APPL#NASDAQ">APPL</a>) appeased the Street with a quarterly report that was not so bad as feared. The company also announced a massive buyback program and a modest dividend hike. The stock has a little under 6% weighting in the S&amp;P 500 Index.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>+0.70%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>+0.42%</td>
</tr>
<tr>
<td>Dow</td>
<td>+0.83%</td>
</tr>
<tr>
<td>R2K</td>
<td>+0.07%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption"> In <a href="https://www.benzinga.com/premarket/" target="_blank" rel="noreferrer noopener">premarket</a>&nbsp;trading on Friday, the&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) climbed 0.41% to $507.08,&nbsp;and the&nbsp;Invesco QQQ ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) jumped 0.71% to $429.93, according to&nbsp;<a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.</figcaption></figure>
Cues From Previous Session:
Stocks rose solidly on Thursday in a relief rally following the Fed decision, with falling bond yields also working in favor of the market. The major indices opened higher but reversed course and fell below the unchanged line briefly in late-morning trading. Buying resumed thereafter, sending the averages steadily higher.
In the process, the Nasdaq Composite and the S&amp;P 500 Index snapped a two-session losing streak. Communication services, IT, and consumer discretionary stocks advanced solidly, while health care and material stocks came under selling pressure.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/-)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>+1.51%</td>
<td>15,840.96</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>+0.91%</td>
<td>5,064.20</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>+0.85%</td>
<td>38,225.66</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>+1.81%</td>
<td>2,016.11</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts: The market will likely do well, <a href="https://www.youtube.com/watch?v=p9TrELXHoyE">said</a> Fund Strat&#8217;s Tom Lee in a CNBC interview, although he predicated his prediction on a condition. &#8220;I know investors are wrestling with a lot of questions in their minds because inflation is higher than expected at the start of the year and rates are higher and stocks are higher, he said. 
Amid the different forecasts for Fed rates, market participants were wondering whether this was a payback period, he added.
Lee noted that earnings season has been overall good although there is evidence that companies are unable to pass on prices, demand is weak, and wage pressures are prevalent. 
&#8220;I think, that&#8217;s part of the confusion that&#8217;s taking place now. But to me, I&#8217;m kind of in the camp that despite all this, it&#8217;s all going to come down to whether inflation improves in the next couple of months or the rest of the year,&#8221; he said.
&#8220;If it does, a lot of these clouds will lift.&#8221; 
Upcoming Economic Data:
<ul>
<li>The Labor Department is due to release its monthly non-farm payrolls report for April at 8:30 a.m. EDT. Economists, on average, expect payroll growth of 240,000, down from the 303,000 pace seen in March. The unemployment rate may have remained unchanged at 3.8% and the annual rate of the average hourly earnings &#8211; an inflation measure, may have ticked down from 4.1% to 4.0%.</li>
<li>The Institute for Supply Management will release the results of its non -manufacturing sector survey at 10 a.m. EDT. The non-manufacturing purchasing managers&#8217; index for April is expected to improve from 51.4% in March to 52%.</li>
<li>Chicago Fed President Austan Goolsbe is scheduled to speak at 7:45 p.m. EDT and New York Fed President John Williams at 8:15 p.m. EDT.</li>
</ul>
See also: <a href="https://www.benzinga.com/money/best-futures-trading-software">Best Futures Trading Software</a>
<ul>
<li>Apple climbed about 6% <a href="https://benzinga.grsm.io/lxquj26b2sag">in premarket trading </a>following its quarterly results.</li>
<li>Other stocks moving on earnings are Amgen, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMGN#NASDAQ">AMGN</a>) (up over 14%), BigBear.ai Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBAI#NYSE">BBAI</a>) (down about 12%), BJ&#8217;s Restaurants, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BJRI#NASDAQ">BJRI</a>) (up over 10%), Cloudflare, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NET#NYSE">NET</a>) (down about 13%), Coinbase Global, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>) (down about 3.5%), Five9, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FIVN#NASDAQ">FIVN</a>) (up over 5%), Expedia Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EXPE#NASDAQ">EXPE</a>) (down over 10%), Illumina, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ILMN#NASDAQ">ILMN</a>) (down about 4.5%), Live Nation Entertainment, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LYV#NYSE">LYV</a>) (up over 3%), Regency Centers Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/REG#NASDAQ">REG</a>) (up over 3%), Tandem Diabetes Care, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TNDM#NASDAQ">TNDM</a>) (up over 17.5%) and Opendoor Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OPEN#NASDAQ">OPEN</a>) (up about 10%).</li>
<li>American Axle &amp; Manufacturing Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXL#NYSE">AXL</a>), Cboe Global Markets, Inc. (CBOE: CBOE), Fluor Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLR#NYSE">FLR</a>), The Hershey Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HSY#NYSE">HSY</a>) and Owens &amp; Minor, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OMI#NYSE">OMI</a>), XPO, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPO#NYSE">XPO</a>) are among the <a href="https://www.benzinga.com/calendars/earnings">notable companies reporting earnings ahead of the market opening.</a></li>
</ul>
Commodities, Bonds, and Global Equity Markets:
Crude oil futures rose modestly in early trading after a four-session losing streak and gold futures were found teetering just above the $2,300-an ounce mark.
The 10-year note yield was flattish at 4.571%, after retreating over 1% on Thursday.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) climbed and traded above the $59K level.
Asian stocks that were open for trading closed mostly higher, tracking the optimism on Wall Street overnight and the positive earnings report from Apple. The Japanese and Chinese markets remained closed for public holidays. The European markets remained firmly in the green in early trading.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/05/38607876/steve-jobs-wasnt-a-fan-but-apples-record-stock-buyback-is-so-massive-it-dwarfs-valuations-of-boe">Steve Jobs Wasn&#8217;t A Fan, But Apple&#8217;s Record Stock Buyback Is So Massive It Dwarfs Valuations Of Boeing, Starbucks, eBay And 415 Other S&amp;P 500 Companies</a>
Photo via Shutterstock

Earnings

Futures

Previews

Federal Reserve

Pre-Market Outlook

Trading Ideas

APPL

BBAI

BJRI

CBOE

FIVN

ILMN

OPEN

TNDM

Wall Street Looks To Feed Off Apple's Post-Earnings Power But Key Jobs Data May Upset The Cart: Analyst Says 'A Lot Of These Clouds Will Lift' If This Happens

Editor&#8217;s note: This story has been updated with additional details. 
Apple, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) reported Thursday with second-quarter results that outperformed <a href="https://www.benzinga.com/news/earnings/24/05/38580920/will-apple-crack-ai-code-and-spark-investor-optimism-tim-cooks-tech-strategy-in-focus-amid-expected">muted goals.</a> The company announced a $110-billion stock buyback program and a one-penny-per-share increase in its quarterly dividend. The shares of the underperforming big tech stock rose about 3.5% following the earnings announcement. 
Apple&#8217;s Key Q2 Numbers: As was widely expected, Cupertino, California-based Apple reported a year-over-year revenue decline after it snapped a four-quarter-long streak of falling revenue in the December quarter. Apple&#8217;s second-quarter earnings per share also fell from one year ago. 
Here&#8217;s how key metrics stacked up against the consensus estimates and prior periods:
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td></td>
<td>Q2&#8217;24 (Actual)</td>
<td>Q2&#8217;24 (Consensus&#x2A;)</td>
<td>Q2&#8217;23</td>
<td>Q1&#8217;24</td>
</tr>
<tr>
<td>Revenue</td>
<td>$90.75B</td>
<td>$90.01B</td>
<td>$94.84B</td>
<td>$119.6B</td>
</tr>
<tr>
<td>Non-GAAP EPS</td>
<td>$1.53</td>
<td>$1.50</td>
<td>$1.52</td>
<td>$2.18</td>
</tr>
<tr>
<td>Gross margin</td>
<td>46.58%</td>
<td>N/A</td>
<td>44.26%</td>
<td>45.88%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">&#x2A;Data from Benzinga Pro.</figcaption></figure>
&#8220;Today Apple is reporting revenue of $90.8 billion for the March quarter, including an all-time revenue record in Services,&#8221; CEO Tim Cook said in a statement.
Commenting on the results, CFO Luca Maestri said, &#8220;Thanks to very high levels of customer satisfaction and loyalty, our active installed base of devices has reached a new all-time high across all products and all geographic segments, and our business performance drove a new EPS record for the March quarter.&#8221;
Apple&#8217;s Shareholder Returns: Apple&#8217;s board declared a quarterly cash dividend of 25 cents per share, payable on May 16 to shareholders of record as of May 13. The dividend represents a 4.17% increase from the 24 cents per share it paid in the first quarter. Citing confidence in Apple's future and the value the company sees in the stock, the company said its board has authorized an additional $110 billion for share repurchases.
See Also: <a href="https://www.benzinga.com/money/everything-you-need-to-know-about-apple-stock">Everything You Need Yo Know About Apple Stock</a>
Apple Businesses: Weakness in iPhone was offset by continued strength in the Services and Mac product segments. Wedbush&#8217;s Daniel Ives predicted soft iPhone unit sales in China due to Huawei competition and a lackluster iPhone 15 upgrade cycle. Emerging market performance was widely expected to offset the Chinese iPhone weakness.
Ahead of the earnings report, Morgan Stanley analyst Erik Woodring projected iPhone and iPad build stability, slight Mac shipment upside and Services outperformance. 
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td></td>
<td>Q2&#8217;24</td>
<td>Consensus&#x2A;</td>
<td>Y-o-Y Change</td>
<td>Q-o-Q Change</td>
</tr>
<tr>
<td>iPhone</td>
<td>$45.96B</td>
<td>$46.42B</td>
<td>-10.46%</td>
<td>-34.06%</td>
</tr>
<tr>
<td>Mac</td>
<td>$7.45B</td>
<td>$6.88B</td>
<td>+3.91%</td>
<td>-4.24%</td>
</tr>
<tr>
<td>iPad</td>
<td>$5.56B</td>
<td>$5.94B</td>
<td>-16.64%</td>
<td>-20.80%</td>
</tr>
<tr>
<td>Wearable, Home &amp; Accessories</td>
<td>$7.91B</td>
<td>$8.08B</td>
<td>-9.70%</td>
<td>-28.42%</td>
</tr>
<tr>
<td>Services</td>
<td>$23.87B</td>
<td>$23.26B</td>
<td>+14.16%</td>
<td>+3.24%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: Apple</figcaption></figure>
All geographies but Europe saw both year-over-year and sequential revenue declines, while Europe reported modest year-over-year revenue growth. Mainland China, Japan and the rest of Asia-Pacific saw the steepest declines from one year ago.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td></td>
<td>Q2&#8217;24</td>
<td>Y-o-Y Change</td>
<td>Q-o-Q Change</td>
</tr>
<tr>
<td>North America</td>
<td>$37.27B</td>
<td>-1.35%</td>
<td>-26.10%</td>
</tr>
<tr>
<td>Europe</td>
<td>$24.12B</td>
<td>+0.71%</td>
<td>-20.66%</td>
</tr>
<tr>
<td>Mainland China</td>
<td>$16.37B</td>
<td>-8.09%</td>
<td>-21.37%</td>
</tr>
<tr>
<td>Japan</td>
<td>$6.26B</td>
<td>-12.81%</td>
<td>-19.43%</td>
</tr>
<tr>
<td>Rest Of Asia&#8211;Pacific</td>
<td>$6.72B</td>
<td>-17.24%</td>
<td>-33.86%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: Apple</figcaption></figure>
Apple&#8217;s Forward Outlook: For the third quarter, which is seasonally weak, the Street forecasts earnings per share of $1.30 and revenue of $82.89 billion. 
&#8220;We're also looking forward to an exciting product announcement next week and an incredible Worldwide Developers Conference next month,&#8221; said Cook.
Key upcoming events that could have a bearing on Apple stock include: 
<ul>
<li>DOJ vs. GOOGL closing arguments</li>
<li>June 10 WWDC </li>
</ul>
Apple Earnings Call Focus: The focus now shifts to the earnings call, which is scheduled for 5 p.m. EDT. Cook will likely shed more light on Cupertino&#8217;s <a href="https://www.benzinga.com/news/24/04/38040467/apple-quietly-unveils-new-ai-model-realm-that-outperforms-openais-gpt-4-despite-being-much-lighter-a">broader AI strategy</a>. This assumes importance because rumors suggest the company is negotiating with both OpenAI and Alphabet to bring AI to its iPhones.
AAPL Stock: Apple closed Thursday&#8217;s regular session up 2.20% at $173.03 and has added an incremental 7.06% to $185.25 in after-hours trading, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data.</a> The stock has shed roughly 10% for the year-to-date period compared to the Invesco QQQ ETF&#8216;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) 4.38% gain and 6.58% rise by the SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).
Read Next: <a href="https://www.benzinga.com/markets/equities/24/04/38348747/not-something-steve-jobs-would-probably-do-gurman-says-apple-should-go-against-the-grain-and-low">&#8216;Not Something Steve Jobs Would Probably Do&#8217;: Gurman Says Apple Should Go Against The Grain And Lower iPhone&#8217;s Price Point</a>
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> 
<div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534;WATCH LIVE: Apple Q2 2024 Earnings Call &#x7C; $AAPL" width="500" height="281" src="https://www.youtube.com/embed/UCb008bIdeQ?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div>
</figure>
Photo courtesy of Apple.

Earnings Beats

Apple Q2 Earnings Beat Muted Forecast On Services, Mac Strength: Installed Base At Fresh Record, Cupertino Announces Massive $110B Buyback (UPDATED)

Indexes are higher after the Fed on Wednesday left rates unchanged. Fed Chair Powell said it is unlikely that the next policy rate move would be a rate hike.

U.S. stock markets surged during Thursday&#8217;s midday trading session in New York, with major averages all showing gains.
Trader sentiment rebounded thanks to positive signals from corporate earnings and relief after Fed Chair Jerome Powell dismissed the possibility of a rate hike <a href="https://www.benzinga.com/economics/macro-economic-events/24/05/38584705/federal-reserve-takes-cautious-stand-on-inflation-powell-signals-preference-for-r">during Wednesday&#8217;s press conference.</a>
The S&amp;P 500 inched 0.3% up at 12:30 p.m. ET, while the tech-heavy Nasdaq 100 slightly outperformed, up 0.6%. Semiconductors stood out as a bright spot, buoyed by <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38588728/5-qualcomm-analysts-highlight-q2-results-q3-guidance-solid-beat-and-raise-amid-carn">robust quarterly results and optimistic guidance</a> from Qualcomm Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>). The iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) rose 1.2%, after plummeting 3.4% Wednesday. 
Small caps fared better than large caps, with the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) up 1%. 
Treasury yields moved slightly lower after Wednesday&#8217;s Federal Open Market Committee (FOMC) meeting indicating reduced fears on potential upward moves in interest rates. The policy-sensitive 2-year yield fell to 4.9%, after touching 5.05% on Wednesday. 
Commodities slid, with gold dropping by 0.8% and West Texas Intermediate (WTI) light crude declining by 0.5% to $78 a barrel, poised to close at its lowest level since Mar. 13, 2024.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) slightly rebounded to $59,000 after tumbling to as low as $56,500 Wednesday. 
<h1 class="wp-block-heading">Thursday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,000.82</td>
<td>1.0%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>17,396.76</td>
<td>0.6%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>37,994.03</td>
<td>0.3%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,028.09</td>
<td>0.3%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:37 p.m. EDT</figcaption></figure>
The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.4% to $502.18, the&nbsp;SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) rose 0.4% to $380.46 and the tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rocketed 0.6% to $424.21, according to&nbsp;<a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.&nbsp;
Sector-wise, the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, up 0.7%, followed by the Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>), up 0.6%. The Materials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>) was the major laggard, down 1%.
<h1 class="wp-block-heading">Thursday&#8217;s Stock Movers</h1>
<ul>
<li>Linde plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LIN#NASDAQ">LIN</a>) fell 5.8% after the company missed quarterly revenue estimates. </li>
<li>Other stocks reacting to earnings were ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>) down 1.6%, Regeneron Pharmaceuticals Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/REGN#NASDAQ">REGN</a>) up 3.8%, Cigna Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) down 2.4%, Southern Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SO#NYSE">SO</a>) up 0.6%, Zoetis Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZTS#NYSE">ZTS</a>) up 6%, Moodys Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCO#NYSE">MCO</a>) down 1%, Apollo Global Management Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APO#NYSE">APO</a>) up 3.9%, Moderna Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NASDAQ">MRNA</a>) up 9%, American International Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIG#NYSE">AIG</a>) up 1.9%, MetLife Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MET#NYSE">MET</a>) down 4% and DoorDash Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DASH#NASDAQ">DASH</a>). </li>
<li>Notable companies reporting after the close include Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Amgen Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMGN#NASDAQ">AMGN</a>), Booking Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKNG#NASDAQ">BKNG</a>), EOG Resources Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EOG#NYSE">EOG</a>), MercadoLibre Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MELI#NASDAQ">MELI</a>), Pioneer Natural Resource Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXD#NYSE">PXD</a>), Monster Beverage Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>), Coinbase Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>) and Fortinet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTNT#NASDAQ">FTNT</a>). </li>
</ul>
Read Now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38590992/sell-in-may-and-go-away-does-the-trading-strategy-hold-up-in-election-years">Sell In May And Go Away: Does The Trading Strategy Hold Up In Election Years?</a>
Photo: Shutterstock

Earnings Misses

DASH

MRNA

QCOM

REGN

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

Wall Street Inches Up After Powell's Inflation Remarks; Chipmakers Rebound; Gold, Crude Falter: What's Driving Markets Thursday?

To gain an edge, this is what you need to know today.
<img alt="" src="https://thearorareport.com/wp-content/uploads/2024/05/2024-05-02_07h55_50.png" style="height:435px; width:700px" />
<h3>Key Events Ahead</h3>
Please <a href="https://thearorareport.com/chart-analysis-stock-market-powell-rally-vanishes-apple-concerns-spy-mc-05022024">click here</a> for an enlarged chart of SPDR S&amp;P 500 ETF Trust (ARCA:SPY) which represents the benchmark stock market index S&amp;P 500 (SPX).
Note the following:
<ul>
<li>The chart shows the steep rally that started on Powell&rsquo;s press conference.</li>
<li>Yesterday, <a href="https://blog.thearorareport.com/powell-050124/">we wrote</a>:</li>
</ul>
<blockquote>If political Powell shows up, expect a rip roaring rally.
</blockquote>
<ul>
<li>Three groups of investors were buying.
<ul>
<li>Investors driven by macro bought on the belief that Powell gave an all clear signal for buying stocks.</li>
<li>Investors who follow traditional technical analysis aggressively bought because a technical buy signal triggered.</li>
<li>The momo crowd was buying because dovish Powell showed up.</li>
</ul>
</li>
<li>The chart shows that at the peak of the rally when buying was very aggressive, The Arora Report took a contrary view and wrote in the Afternoon Capsule:</li>
</ul>
<blockquote>In The Arora Report analysis, there may be a re-think of the stock market rally as Powell was not able to support his dovishness with data or compelling argument.
</blockquote>
<ul>
<li>The chart shows that The Arora Report call has proven prescient as all of the stock market rally was given back.</li>
<li>Two key events are ahead:
<ul>
<li>Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) earnings</li>
<li>Jobs report, also known as the mother of all reports</li>
</ul>
</li>
<li>The momo crowd&rsquo;s pattern is to buy ahead of key events.&nbsp;The reason is that the momo crowd buys on hopium and does not take risk into account. Today is no different.&nbsp;The momo crowd is aggressively buying ahead of Apple earnings and the mother of all reports. In contrast, smart money knows that key events present risk.&nbsp; To reduce risk, smart money tends to trim ahead of key events.</li>
<li>Apple will report earnings after the market close.&nbsp; Here are the key points:
<ul>
<li>Analysts expect about a 5% drop in Apple revenues.</li>
<li>If analysts are right, this will be the fifth of the last six quarters with a drop in Apple revenues.</li>
<li>We have been sharing with you the problems Apple is facing in China.</li>
<li>Qualcomm Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qcom#NASDAQ">QCOM</a>) owns patents on key technologies that power today&rsquo;s smartphones, including iPhones. As full disclosure, QCOM is in The Arora Report&#39;s&nbsp;ZYX Buy Model Portfolio.&nbsp; QCOM long from $47.13.&nbsp; Apple is a key Qualcomm customer.&nbsp; QCOM data shows that it generated great revenues in China.&nbsp; The implication here is that other companies such as Huawei are taking significant market share from Apple as Chinese switch away from iPhones.&nbsp;&nbsp;</li>
<li>As full disclosure, AAPL is in The Arora Report&#39;s&nbsp;ZYX Buy Model Portfolio.&nbsp; AAPL is long from $4.68.&nbsp;&nbsp;</li>
<li>Apple earnings are very important.&nbsp; Risks to Apple are also very important.&nbsp; Institutions are selling AAPL stock.&nbsp; It is important to become knowledgeable about Apple.&nbsp;&nbsp;</li>
</ul>
</li>
<li>The jobs report will be released at 8:30am ET tomorrow.</li>
<li>Initial jobless claims came at 208K vs. 213K consensus.&nbsp;This indicates that the employment picture remains strong.</li>
<li>Q1 Productivity-Prel came at 0.3% vs. 0.8% consensus. &nbsp; This indicates that AI has not become as pervasive in the workplace as some prior data indicated.</li>
<li>Q1 unit labor costs-Prel came at 4.7% vs. 2.5% consensus.&nbsp; This indicates that taming inflation is a challenge.</li>
</ul>
<h3>Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in AAPL, Amazon.com, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>), Meta Platforms Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>), Microsoft Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>), NVIDIA Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>), and Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>).
In the early trade, money flows are neutral in Alphabet Inc Class C (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>).
In the early trade, money flows are positive in SPDR S&amp;P 500 ETF Trust (ARCA:SPY) and Invesco QQQ Trust Series 1 (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>).
<h3>Momo Crowd And Smart Money In Stocks</h3>
The momo crowd is aggressively buying stocks in the early trade.&nbsp; Smart money is inactive in the early trade.
<h3>Gold</h3>
As we are ready to publish this post, all of a sudden, significant selling is coming in gold.
The momo crowd is buying gold in the early trade.&nbsp;Smart money is inactive in the early trade.
For longer-term, please see gold and silver ratings.
The most popular ETF for gold is SPDR Gold Trust (ARCA:GLD).&nbsp;The most popular ETF for silver is iShares Silver Trust (ARCA:SLV).&nbsp;
<h3>Oil</h3>
As we are ready to publish this post, all of a sudden, significant selling is coming in oil.
The momo crowd is buying oil in the early trade.&nbsp; Smart money is inactive in the early trade.
For longer-term, please see oil ratings.
The most popular ETF for oil is United States Oil ETF (ARCA:USO).
<h3>Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is seeing buying on dovish Powell.
<h3>Protection Band And What To Do Now</h3>
It is important for investors to look ahead and not in the rearview mirror.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp;The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp;If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp;When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h3>Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of seven year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter">Generate Wealth Newsletter</a>.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

Powell Rally Vanishes, Qualcomm Heightens Apple Concern, Mother Of All Reports Ahead

Good Morning Traders! In today&#39;s Market Clubhouse Morning Memo, we will discuss SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META, and TSLA.
Our proprietary formula, exclusive to Market Clubhouse, dictates these price levels. This dynamic equation takes into account price, volume, and options flow. These levels are updated every day and shared with all Clubhouse Members, prior to the opening of the market.
We recommend closely monitoring these stocks, and be prepared to leverage potential breakouts or reversals. As always, stay alert and ready to adjust your tactics based on the market&#39;s pulse to optimize your trading gains. Now, let&#39;s dive into the stock analysis:
<h3>SPDR S&amp;P 500 ETF Trust </h3>
The SPY&nbsp;(ARCA: SPY) is currently trading around 503.95. For the bulls, the immediate target is a rise to 505.32. If the market maintains strength above this level, we anticipate buyers pushing the price further to a supportive level at 506.06. Holding above 506.06 during the trading day could lead to an uptick towards 506.71, with a potential high target for bulls at 508.34.
On the downside, if 503.95 fails to act as a support, we expect the bears to challenge the strength at 502.85. Should selling pressure intensify, the next target for the bears would be 501.74. Breaking through this level could bring the SPY down to a stronger support at 500.91. In a heavy sell-off scenario, our lower bear target is set at 498.93.
<h3>Invesco QQQ Trust Series 1</h3>
The QQQs (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>) are navigating around a crucial point at 425.77. The bulls aim to secure a position above 426.64, which, if successful, could establish 427.32 as a robust support level. With continued buying, the price might ascend to 428.50 and potentially reach a test high of 429.40. The bullish target for the day is set at 430.16.
Conversely, if the price struggles to stay above 425.77, bears might take the opportunity to push the price down to 424.82. A weakness observed could lead to a further drop to 424.04. Persistent selling might challenge the support at 423.27, with a bearish day potentially driving the price down to 420.76.
<h3>Apple Inc. </h3>
Apple&#39;s&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) current trading level is at 171.13. The bulls are hoping to maintain this as a supportive base and propel the price to 171.79. If the momentum stays bullish, the next target is 172.45, followed by 172.95. Should the bulls dominate today&#39;s trading, the aspiration is to reach a high of 173.39.
Should Apple fail to hold at 171.13, the price might retreat to 170.32. With increased selling activity, the next focus would be on bringing the price down to 169.73. Further bearish momentum might lead to 168.99, with a possible deep drop to a low bear target of 168.41.
<h3>Microsoft Corp.</h3>
Microsoft&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>) is presently positioned at 398.38. The bullish scenario involves holding this level and moving upward to 399.21, which should then serve as a solid base for further gains. If sustained, this could lead to an attempt at reaching 400.30, with a high target of 401.39 for the day.
If Microsoft cannot sustain support at 398.38, the bearish outlook includes a drop to 397.65. Breaking below this level might lead to further declines to 395.68 and 394.46. In a significant bearish push, the lowest target for the day is set at 393.47.
<h3>NVIDIA Corporation</h3>
NVIDIA&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) is trading around 846.80. For bullish traders, the initial goal is to climb to 852.61 and establish it as a clear support level. If buying continues, the next levels to target are 865.62 and 877.25, with a high for the day set at 882.97.
If NVIDIA fails to maintain 846.80 as a support, bears may test lower at 842.42. A breakdown here could lead to a drop to 837.58. Should the selling intensify, the price might be driven down to 833.50, with the lowest bear target at 827.98.
<h3>Alphabet Inc Class A</h3>
Alphabet&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>) is operating around 165.41. Bulls are looking to hold 167.04 as support and push the price to 169.34. With continued bullish energy, the day might culminate at a high of 171.14.
If the support at 165.41 does not hold, bears might push the price down to 163.79. A breach here could lead to further testing at 161.79. In a scenario of strong selling, the lowest bear target for the day is projected at 160.36.
<h3>Meta Platforms Inc</h3>
Meta&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>) is trading around 441.35. The bullish strategy involves holding this level, moving up to 446.90, and possibly reaching 450.55. Strong buying could further propel the price to a high target of 453.45.
Conversely, if Meta cannot sustain 441.35, the bearish route would involve a move down to 436.87, followed by 432.39. A significant sell-off might bring the price to the day&#39;s lowest bear target at 429.01.
Final Word:&nbsp; Today&#39;s market session is pivotal with several key data releases on the schedule. The day begins with the release of Continuing and Initial Jobless Claims at 8:30 AM ET, providing insights into the employment landscape. Following closely are the Preliminary Non-Farm Productivity and Unit Labor Costs for the first quarter. Shortly after the New York session begins, more data will be available with the Final Durable Goods Orders, Capital Goods Orders, and Factory Orders for March. Later in the morning at 11:30 AM, the Treasury will conduct auctions for 4 and 8 Week Bills, which could influence short-term market liquidity. After the trading day concludes, Apple will release its earnings, which is likely to impact market dynamics significantly due to its substantial market influence. Participants should approach the day with caution and strategize accordingly. Good luck and trade safely!
The Morning Memo is curated by RIPS, a pro trader with years of experience in equities, options, and futures trading. RIPS is at the heart of the exclusive Market Clubhouse community, offering his insights, expertise, and real-time mentorship.
Start your day with a live daily market analysis, a carefully selected watch list, early access to the Morning Memo, and exclusive Market Clubhouse price levels, providing precise support and resistance indicators. When you become a member of Market Clubhouse, you will gain early access to the Morning Memo, just like this one, every single day&mdash;hours before it&#39;s published. You will also have access to a live stream with zero latency and screen sharing, enabling you to witness Rips executing his trades in real-time and sharing his exclusive trading plans, strategies, and live decision-making.
For a limited time during our special promotion, you can join RIPS and get a full access pass to Market Clubhouse for 7 full days for just $7. Check it out at <a href="https://marketclubhouse.club/7Days/" title="https://marketclubhouse.club/7Days/">https://marketclubhouse.club/7Days/</a> where you can trade live with him and tap into his wealth of knowledge and experience. You can also catch Rips on his live day trading streams every Monday-Friday at 8 am EST on the Market Clubhouse YouTube channel: <a href="https://www.youtube.com/@MarketClubhouse" title="https://www.youtube.com/@MarketClubhouse">https://www.youtube.com/@MarketClubhouse</a>.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

Market Clubhouse Morning Memo - May 2nd, 2024 (Trade Strategy For SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, And META)

Expectations are very muted as Apple, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) prepares to announce its fiscal year 2024 <a href="https://www.benzinga.com/calendars/earnings">second-quarter results </a>Thursday after the market close.
Apple&#8217;s Key Q2 Numbers: Apple&#8217;s year-over-year revenue declining streak is expected to resume and the bottom-line performance is expected to be flattish from a year earlier.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td></td>
<td>Q2&#8217;24 Consensus&#x2A;</td>
<td>Q2&#8217;23</td>
<td>Q1&#8217;24</td>
</tr>
<tr>
<td>Revenue</td>
<td>$90.01B</td>
<td>$94.84B</td>
<td>$119.6B</td>
</tr>
<tr>
<td>Non-GAAP EPS</td>
<td>$1.50</td>
<td>$1.52</td>
<td>$2.18</td>
</tr>
<tr>
<td>Gross margin</td>
<td>N/A</td>
<td>44.26%</td>
<td>45.88%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">&#x2A;according to Benzinga Pro data</figcaption></figure>
The predicament is primarily due to the weak uptake of its flagship iPhone device. Bullish analyst Daniel Ives said in a recent note that he expects iPhone unit sales in China to be softer, with revenue potentially declining&nbsp;year-over-year,&nbsp;due to&nbsp;Huawei&nbsp;competition and a lackluster iPhone 15 upgrade cycle.
Market research firm Canalys said worldwide smartphone shipments rose 10% year-over-year in the first quarter to 296.2 million units. Apple&#8217;s shipments, however, fell 16% to 48.7 million units and its market share fell five points to 16%.
Morgan Stanley analyst Erik Woodring said he expected a slight March quarter beat from April, with the headline metrics likely coming in at $91 billion and $1.51 per share, respectively. 
See Also: <a href="https://www.benzinga.com/money/everything-you-need-to-know-about-apple-stock">Everything You Need to Know About Apple Stock</a>
Apple Businesses: Woodring sees iPhone and iPad build stability, slight Mac shipment upside, and Services outperformance. Estimates provided by Morgan Stanley (consensus and in-house) for the various product categories are as follows:
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td></td>
<td>Consensus</td>
<td>Morgan Stanley&#8217;s estimates</td>
<td>Q2&#8217;23</td>
<td>Q1&#8217;24</td>
</tr>
<tr>
<td>iPhone</td>
<td>$46.42B</td>
<td>$46.48B</td>
<td>$51.33B</td>
<td>$69.70B</td>
</tr>
<tr>
<td>Mac</td>
<td>$6.88B</td>
<td>$6.63B</td>
<td>$7.17B</td>
<td>$7.78B</td>
</tr>
<tr>
<td>iPad</td>
<td>$5.94B</td>
<td>$6.39B</td>
<td>$6.67B</td>
<td>$7.02B</td>
</tr>
<tr>
<td>Wearable, Home &amp; Accessories</td>
<td>$8.08B</td>
<td>$7.93B</td>
<td>$8.76B</td>
<td>$11.05B</td>
</tr>
<tr>
<td>Services</td>
<td>$23.26B</td>
<td>$23.56B</td>
<td>$20.91B</td>
<td>$23.12B</td>
</tr>
</tbody>
</table>
</figure>
Forward Outlook: For the third quarter, which is seasonally weak, the Street forecasts earnings per share of $1.30 and revenue of $82.89 billion. Woodring expects the company to guide revenue 4-7% below consensus.
Ives models June-quarter iPhone revenue of about $35 billion and total revenue in the $80 billion range.&nbsp;He expects things to improve with the launch of the iPhone 16 model. &#8220;The good news is help is on the way as we believe a pent-up demand cycle with an AI-driven iPhone 16 model on the horizon should enable Cook &amp; Co. to return to growth again in China with tailwinds into FY25,&#8221; he said. 
Key upcoming events that could have a bearing on the stock included:
<ul>
<li>April 30 Epic v. Apple hearing</li>
<li>May 1-3, DOJ vs. GOOGL closing arguments</li>
<li>June 10 WWDC </li>
</ul>
Morgan Stanley&#8217;s Woodring said, &#8220;Historically, a mixed March quarter earnings report/June quarter guide has been neutral to slightly positive for Apple&#8217;s shares in the day, week and month following earnings.&#8221;
Earnings Call Focus: CEO Tim Cook will likely shed more light on the <a href="https://www.benzinga.com/news/24/04/38040467/apple-quietly-unveils-new-ai-model-realm-that-outperforms-openais-gpt-4-despite-being-much-lighter-a">broader AI strategy </a>as the technology would be a game-changer for the Apple story over the coming years, said Ives. This assumes importance because rumors suggest the company is negotiating with both OpenAI and Alphabet to bring AI to its iPhones.
The Apple Stock: In premarket trading, the stock rose 1.09% to $171.15, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data.</a> The stock has shed roughly 12% for the year-to-date period compared to the Invesco QQQ ETF&#8216;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) 3.07% gain and 5.60% rise by the SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38540655/wall-street-braces-for-brutal-apple-earnings-but-top-analyst-gives-6-reasons-to-sta">Wall Street Braces For Brutal Apple Earnings, But Top Analyst Gives 6 Reasons To Stay Bullish On iPhone Maker</a>
Photo courtesy: Apple

Will Apple Crack AI Code And Spark Investor Optimism? Tim Cook's Tech Strategy In Focus Amid Expected Q2 Slump

U.S. stocks look to push ahead on a positive path, now that the <a href="https://www.benzinga.com/markets/equities/24/05/38563545/powell-keeps-hawks-at-bay-says-interest-rate-hike-unlikely-stocks-gold-rally-while-treasury-yiel">Federal Reserve&#8217;s rate decision </a>is in the rearview mirror. Major index futures point to a positive open on Thursday. Pent-up demand following the recent losses could provide some upward thrust to the market but a lot would ride on the earnings reports that traders get to digest.
Apple, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is on track to report after the market closes, while most tech earnings released after Wednesday&#8217;s closing bell have triggered negative reactions. Traders may also watch out for the jobless claims data and bond yields, given their significance for the Fed funds rate.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>+0.95%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>+0.64%</td>
</tr>
<tr>
<td>Dow</td>
<td>+0.36%</td>
</tr>
<tr>
<td>R2K</td>
<td>+0.87%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption"> In <a href="https://www.benzinga.com/premarket/" target="_blank" rel="noreferrer noopener">premarket</a>&nbsp;trading on Thursday, the&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) climbed 0.67% to $503.71,&nbsp;and the&nbsp;Invesco QQQ ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) jumped 0.97% to $425.62, according to&nbsp;<a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.</figcaption></figure>
Cues From Previous Session:
Despite Fed Chair Jerome Powell treading a dovish line, the major averages closed mixed on Wednesday. Stocks mostly languished sideways until the afternoon, characteristic of a Fed decision day. They began to rise after the pause verdict was announced and the upward momentum accelerated after Powell&#8217;s press conference.
The Fed chief made it clear that the Fed would likely ease rather than tighten further and also conceded that the monetary policy is restrictive. Sentiment reversed course in the last thirty minutes of trading and the averages reversed course before closing mixed.
The S&amp;P 500 and the Nasdaq Composite fell for a second straight session, returning to their lowest closing level since April 22. The Dow Industrials ended higher, thanks to strong gains in the shares of Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) and Amazon, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>). Energy and IT stocks fell sharply, while utility and communication services stocks gained ground.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/-)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>-0.33%</td>
<td>15,605.48</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>-0.34%</td>
<td>5,018.39</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>+0.23%</td>
<td>37,903.29</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>+0.32%</td>
<td>1,980.23</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
There is more downside risk to the market in the intermediate term, said Morgan Stanley&#8217;s Lisa Shalett. She noted that the prospect of interest rate cuts helped buoy stocks in the first quarter. The strength continued, thanks to decent first-quarter 2024 company earnings results thus far as well as investors' hope that above-trend economic growth could offset any negative effects from higher rates. 
The odds of the more concerning recessionary &#8220;hard landing,&#8221; in which the economy slows sharply, have jumped to about 25%-30%, she said.&nbsp;
Larry Tentarelli, Chief Technical Strategist, Blue Chip Daily Trend Report, said a &#8220;no cut scenario&#8221; in 2024 may not be a negative, as long as inflation does not turn up and the economy holds up reasonably well.
&#8220;We believe that the Fed will remain data dependent, meeting to meeting. Unless 12-month core PCE starts to drop meaningfully, to at least 2.40% or less in the next two months than any rate cuts could be delayed, including for all of 2024,&#8221; he said.
&#8220;A caveat here would be the labor market and if jobs start to weaken notably. A very weak jobs market could prompt the Fed to cut, but this is not the case now, with a very strong labor market.&#8221;
Upcoming Economic Data:
<ul>
<li>The Labor Department is due to release its jobless claims report at 8:30 a.m. EDT, with economists, on average, expecting the number of individuals filing for unemployment benefits to come in at 212,000 in the week ended April 25. This compares to the previous reporting week&#8217;s 207,000.</li>
<li>The Labor Department will also release its preliminary first-quarter productivity and costs report around the same time. The consensus estimates call for a 0.5% quarter-over-quarter increase in non-farm productivity and a 4% increase in unit labor costs. This compares to 3.2% and 0.4% growth rates, respectively, for the fourth quarter.</li>
<li>The Commerce Department is scheduled to release its trade balance and factory goods orders data, both for March, at 8:30 a.m. EDT and 10 a.m. EDT, respectively. The trade deficit may have widened to $69.5 billion, up from a deficit of $68.9 billion in February. Factory orders may have increased 1.7% month-over-month, faster than the 1.4% growth in February.</li>
<li>The Treasury will auction four- and eight-week bills at 11:30 a.m. EDT.</li>
</ul>
See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How To Trade Futures </a>
Stocks In Focus: 
<ul>
<li>Shares of freight &amp; logistics company C.H. Robinson Worldwide, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHRW#NASDAQ">CHRW</a>) climbed over 12% <a href="https://www.benzinga.com/premarket">in premarket trading</a> following its quarterly results.</li>
<li>Other shares moving on earnings news are eBay Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EBAY#NASDAQ">EBAY</a>) (down over 3%), Etsy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ETSY#NASDAQ">ETSY</a>) (down over 12.50%), First Solar, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FSLR#NASDAQ">FSLR</a>) (down about 2.50%), Freshworks Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FRSH#NASDAQ">FRSH</a>) (down over 27%), Kulicke and Soffa Industries, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KLIC#NASDAQ">KLIC</a>) (down about 4%), MGM Resorts International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGM#NYSE">MGM</a>) (up over 6%), NETGEAR, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTGR#NASDAQ">NTGR</a>) (down over 20%), Monolithic Power Systems, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MPWR#NASDAQ">MPWR</a>) (up over 4%), Qorvo, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QRVO#NASDAQ">QRVO</a>) (down over 10%), Sunnova Energy International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOVA#NYSE">NOVA</a>) (up over 3.50%), Upwork Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UPWK#NASDAQ">UPWK</a>) (up about 10%), Wolfspeed, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WOLF#NYSE">WOLF</a>) (down about 9%), DoorDash, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DASH#NASDAQ">DASH</a>) (down over 12%) and Zillow Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZG#NASDAQ">ZG</a>) (down over 6%).</li>
<li>ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>), CyberArk Software Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CYBR#NASDAQ">CYBR</a>), Ferrari N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RACE#NYSE">RACE</a>), Intercontinental Exchange, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ICE#NYSE">ICE</a>), Kimco Realty Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KIM#NYSE">KIM</a>), Moderna, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NASDAQ">MRNA</a>), PENN Entertainment, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PENN#NASDAQ">PENN</a>), Wayfair Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/W#NYSE">W</a>) and Zoetis Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZTS#NYSE">ZTS</a>) are among the <a href="https://www.benzinga.com/calendars/earnings">notable companies reporting earnings ahead of the market opening.</a></li>
<li>Notable names reporting after the close are Amgen, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMGN#NASDAQ">AMGN</a>), Apple, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) BigBear.ai Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBAI#NYSE">BBAI</a>), BJ&#8217;s Restaurants, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BJRI#NASDAQ">BJRI</a>), Booking Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKNG#NASDAQ">BKNG</a>), Cloudflare, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NET#NYSE">NET</a>), Coinbase Global, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>), Consolidated Edison, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ED#NYSE">ED</a>), DraftKings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DKNG#NASDAQ">DKNG</a>), Five9, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FIVN#NASDAQ">FIVN</a>), Expedia Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EXPE#NASDAQ">EXPE</a>), Illumina, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ILMN#NASDAQ">ILMN</a>), Live Nation Entertainment, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LYV#NYSE">LYV</a>), United States Steel Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>), Regency Centers Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/REG#NASDAQ">REG</a>), Reinsurance Group of America, Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RGA#NYSE">RGA</a>), Pioneer Natural Resources Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXD#NYSE">PXD</a>), Opendoor Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OPEN#NASDAQ">OPEN</a>) and Monster Beverage Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>).</li>
</ul>
Commodities, Bonds, and Global Equity Markets:
Crude oil futures, which slumped over 3.50% Wednesday following the Fed decision, recovered slightly on Thursday but held below the $80 psychological resistance. After advancing modestly on Wednesday, gold futures reversed course, with an ounce of the yellow metal fetching $2,307.45.
After Wednesday&#8217;s retreat, the 10-year note yield edged up and was around the 4.62% mark.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) fell below $60,000 but saw a modest recovery early in U.S. premarket hours.
Asian markets, which reopened after Wednesday&#8217;s Labor Day holiday, ended mostly higher, led by the Hong Kong market. The Chinese market remained closed for a second day, in observance of Labor Day. European stocks pulled back in early trading, with the Euros STOXX 50 Index down over 0.40%.
Read Next:<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38573665/bitcoin-selloff-just-getting-started-gold-bull-peter-schiff-spots-bearish-technical"> Bitcoin Selloff Just Getting Started? Gold Bull Peter Schiff Spots Bearish Technical Pattern As BTC Drops Below $60K</a>
Photo via Shutterstock.

CHRW

CYBR

DKNG

EBAY

ETSY

FRSH

FSLR

KLIC

MPWR

NOVA

NTGR

PENN

QRVO

RACE

UPWK

WOLF

Nasdaq, S&P 500 Futures Rise Ahead Of Apple Earnings: Why This Analyst Thinks 'No Cut' Scenario May Not Be Negative For Market

Federal Reserve Chair Jerome Powell emphasized the need to allow more time for restrictive monetary policies to bring inflation toward the Fed&#8217;s 2% goal Wednesday while reassuring markets the Fed&#8217;s policy stance remains appropriate, pushing back <a href="https://www.benzinga.com/news/econ-s/24/05/38561640/fed-keeps-interest-rates-steady-announces-slower-than-expected-pace-of-balance-sheet-runoff">fears of rate hikes.</a> 
&#8220;The inflation data received so far this year have been higher than expected,&#8221; Powell said adding that it is likely that gaining greater confidence in disinflation will take longer than previously thought. 
Addressing concerns about potential rate hikes due to recent inflationary pressures, Powell said: &#8220;I think it&#8217;s unlikely that the next policy rate move will be a hike. We&#8217;d need to see persuasive evidence that our policy stance is not sufficiently restrictive to bring inflation sustainably down to 2% overtime. That&#8217;s not what we think we&#8217;re seeing.&#8221;
<h3 class="wp-block-heading">Powell Expects Lower Inflation Over The Year, But Says Rate Cuts Can Wait</h3>
Powell said he believes that inflation will move back down over the year and that it will be lower than the latest readings. 
&#8220;We&#8217;ve got work left to do, but we&#8217;re not looking at the very high inflation rates that we were seeing two years ago,&#8221; the Fed chair said. 
Regarding rate cuts, Powell reiterated his previous comments.
&#8220;It wouldn&#8217;t be appropriate to dial back our restrictive policy stance until we&#8217;ve gained greater confidence that inflation is moving down sustainably toward 2%,&#8221; he said. 
&#8220;I don&#8217;t know how long it&#8217;ll take. I can just say that when we get that confidence then rate cuts will be in scope,&#8221; he added.
If that inflation is moving sustainably down to 2% and there is an unexpected weakening in the labor market, for example, that would be a path for the Fed to cut interest rates, Powell said. 
The labor market remains relatively tight, but demand and supply have moved into better balance, he said. 
&#8220;Policy is well positioned to address different paths that the economy might take,&#8221; Powell said, indicating a preference for keeping rates steady for longer. 
Turning to the specifics of the Federal Reserve&#8217;s balance sheet, the Federal Open Market Committee has decided to slow its balance sheet runoff, reducing the reduction of securities holdings from $60 billion per month to $25 billion starting June 1. 
&#8220;The decision to slow the pace of runoff does not mean that our balance sheet will ultimately shrink by less than it would otherwise,&#8221; Powell said, adding the Fed is aiming for a smoother transition and to mitigate potential stresses in money markets.
Addressing speculation around stagflation, Powell expressed confusion, contrasting current economic indicators with those from the 1970s, a period known for stagflation. 
&#8220;I don&#8217;t really understand where that&#8217;s coming from,&#8221; he said, highlighting significant differences with today&#8217;s economic scenario, which includes a 3% growth rate and inflation below 3%.
<h3 class="wp-block-heading">Market Reactions: Stocks, Gold Soar, While Dollar Takes A Blow</h3>
Market participants interpreted Powell&#8217;s remarks as less hawkish than feared, which sparked a relief rally in stocks and gold. 
Traders raised their bets Wednesday on a Federal Reserve rate cut by September, indicating expectations that a cut is more likely than not, according to the CME Group&#8217;s FedWatch tool. 
Treasury yields fell sharply across the board, with the policy-sensitive two-year yield falling from over 5.03% to 4.95%. Yields on the 10-year benchmark slowed by 6 basis points to 4.64%. 
The S&amp;P 500, as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), rallied over 1% after the Fed statement and Powell&#8217;s press conference. 
The tech-heavy Nasdaq 100, as monitored through the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), outperformed, rallying 1.6%. 
Gold also increased by about 1%, as the U.S dollar index (DXY), tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), fell 0.3%.
<h3 class="wp-block-heading">Chart: Markets React To May FOMC Meeting</h3>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/01152853/image-8-1024x495.png" alt="" class="wp-image-318189" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/01152853/image-8-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/01152853/image-8-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/01152853/image-8-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/01152853/image-8-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/01152853/image-8.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Federal Reserve Chair Jerome Powell speaks at a press conference Wednesday, May 1, 2024. Photo courtesy of the Federal Reserve.

Sector ETFs

PowerShares DB US Dollar Index Bullish Fund

Powell Keeps Hawks At Bay, Says Interest Rate Hike 'Unlikely': Stocks, Gold Rally, While Treasury Yields, Dollar Tumble

General

Major indexes are higher after the Fed left rates unchanged. Fed Chair Powell said it is unlikely that the next policy rate move would be a rate hike.

Indexes Volatile Following Decision To Leave Rates Unchanged

Traders are treading cautiously in Wednesday&#8217;s session, seeking more clarity on the Federal Reserve&#8217;s stance with <a href="https://www.benzinga.com/general/macro-notification/24/04/38526201/is-hawkish-shift-on-inflation-imminent-wall-street-analysts-traders-brace-for-fed-impa">inflation reports exceeding expectations. </a>
The forthcoming Federal Open Market Committee statement is anticipated to maintain interest rates where they are and possibly unveil a reduction in the Fed&#8217;s balance sheet runoff from $60 billion to $30 billion monthly. Fed Chair Jerome Powell&#8216;s press conference is at 2:30 p.m. ET.
The S&amp;P 500 inched 0.2% lower, while the tech-heavy Nasdaq 100 underperformed, down 0.6%. Blue chips managed to avoid losses and showcased a 0.3% rise. 
Aside from Fed policy, earnings remain a key driver of market sentiment, particularly as chipmaker Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) offered less optimistic second-quarter guidance than expected. This news led to a nearly 10% drop in its share price. In sympathy, the broader industry saw a decline, with heavyweight Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) also experiencing a more than 5% decrease in its shares.
Data-wise, the ADP National Employment Report revealed a stronger-than-expected private jobs addition in April, ahead of the highly awaited official jobs report on Friday. The ISM Manufacturing Index surprisingly fell back into contraction territory, missing expectations. 
Sentiment on the cryptocurrency market continued to remain fragile, with Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) sinking over 5%, on track for a two-day, 10% slump, the worst since November 2022. 
<h3 class="wp-block-heading">Wednesday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>37,940.89</td>
<td>0.3%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>1,972.88</td>
<td>0.0%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,024.25</td>
<td>-0.2%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>17,334.25</td>
<td>-0.6%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:28 p.m. EDT</figcaption></figure>
The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) fell 0.2% to $501.04, the&nbsp;SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) rose 0.3% to $379.38 and the tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) fell 0.6% to $422.21, according to&nbsp;<a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.&nbsp;
Sector-wise, the Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) outperformed, up 1.2%, followed by the Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>), up 1.1%. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) was the major laggard, down 1.6%.
<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>
<ul>
<li>Starbucks Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>) plummeted over 16% in reaction to its earnings report. </li>
<li>Other companies reacting to earnings were Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), up 1.2%, Stryker Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SIK#NYSE">SIK</a>), Mondelez International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MDLZ#NYSE">MDLZ</a>) down 1.6%, Mastercard Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MA#NYSE">MA</a>) down 1%, Pfizer Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>), The Estee Lauder Companies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EL#NYSE">EL</a>), down 13%, Pinterest Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PINS#NASDAQ">PINS</a>) up nearly 20%, New York Community Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NYCB#NYSE">NYCB</a>) up over 30% and Norwegian Cruise Line Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NCLH#NYSE">NCLH</a>) down nearly 14%.</li>
<li>Notable names reporting after the close are Albemarle Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALB#NYSE">ALB</a>), The Allstate Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALL#NYSE">ALL</a>), Beazer Homes USA, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BZH#NYSE">BZH</a>), C.H. Robinson Worldwide, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHRW#NASDAQ">CHRW</a>), Devon Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DVN#NYSE">DVN</a>), eBay Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EBAY#NASDAQ">EBAY</a>), Etsy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ETSY#NASDAQ">ETSY</a>), First Solar, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FSLR#NASDAQ">FSLR</a>), Freshworks Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FRSH#NASDAQ">FRSH</a>), Kulicke and Soffa Industries, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KLIC#NASDAQ">KLIC</a>), Marathon Oil Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRO#NYSE">MRO</a>), MetLife, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MET#NYSE">MET</a>), MGM Resorts International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGM#NYSE">MGM</a>), NETGEAR, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTGR#NASDAQ">NTGR</a>), Qorvo, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QRVO#NASDAQ">QRVO</a>), Sunnova Energy International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOVA#NYSE">NOVA</a>), Upwork Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UPWK#NASDAQ">UPWK</a>), Wolfspeed, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WOLF#NYSE">WOLF</a>) and Zillow Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZG#NASDAQ">ZG</a>).</li>
</ul>
Read now: <a href="https://www.benzinga.com/economics/macro-economic-events/24/05/38557569/april-jobs-report-preview-bank-of-america-anticipates-solid-payrolls-growth-risin">April Jobs Report Preview: Bank Of America Anticipates Solid Payrolls Growth, Rising Wage Pressures</a>
Illustration created using artificial intelligence via MidJourney.

MDLZ

NCLH

NYCB

PINS

SBUX

US Stocks Mixed Ahead Of Fed Meeting, Chipmakers Tumble After AMD Earnings, Bitcoin Sinks: What's Driving Markets Wednesday?

To gain an edge, this is what you need to know today.
<img alt="" src="https://thearorareport.com/wp-content/uploads/2024/05/2024-05-01_08h09_21.png" style="height:350px; width:624px" />
<h3>Making A Fortune In Artificial Intelligence</h3>
Please <a href="https://thearorareport.com/chart-analysis-stock-market-fomc-meeting-powell-rate-decision-smci-mc-05012024">click here</a> for an enlarged chart of Super Micro Computer Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/smci#NASDAQ">SMCI</a>).
Note the following:
<ul>
<li>This article is about the big picture, not an individual stock. The chart of SMCI stock is being used to illustrate the point.</li>
<li>Super Micro has been the most favorite artificial intelligence stock of the momo crowd.&nbsp;The chart shows the big drop in the stock on earnings released after the market closed.</li>
<li>The chart shows a 40.5% drop since the high in March.</li>
<li>RSI shown on the chart foretold what was to come.</li>
<li>The momo crowd, including momo gurus, that ran up the stock did not really understand the server business.</li>
<li>SMCI presents an important learning moment for prudent investors.&nbsp;These are four important points here:
<ul>
<li>What you do not buy is as important as what you buy.&nbsp;&nbsp;</li>
<li>A little knowledge is a dangerous thing.&nbsp;&nbsp;</li>
<li>The momo crowd&rsquo;s history is that they make money because they run up stocks with their own buying.&nbsp;Subsequently, the momo crowd loses money when smart money sells into the strength.&nbsp;Often, the momo crowd loses more money than they make, resulting in a net loss.&nbsp;&nbsp;&nbsp;</li>
<li>Follow smart money for investments.&nbsp;Selectively follow the momo crowd for very short term trades when there is a Signal or Signal Limited.&nbsp;&nbsp;</li>
</ul>
</li>
<li>Members and readers of The Arora Report, already knew in advance what was to come.&nbsp;On March 4, right near the top of SMCI stock, <a href="https://www.benzinga.com/markets/24/03/37461504/yolo-rears-its-ugly-head-in-the-stock-market-bitcoin-hits-65k-target-opec-extends-production-cuts">we wrote</a>:</li>
</ul>
<ul>
<li>
<blockquote>SMCI has become a favorite of the momo crowd.&nbsp;The momo crowd incorrectly thinks SMCI has the same potential as Nvidia (NVDA).&nbsp;Investors need to keep in mind the following:
</blockquote>
<ul>
<li>
<blockquote>SMCI moves a lot more than NVDA.&nbsp;SMCI is so volatile because of the small float.
</blockquote>
</li>
<li>
<blockquote>SMCI is an assembler of servers for artificial intelligence.&nbsp;It uses components from NVDA, Micron (MU), and Marvell (MRVL).
</blockquote>
</li>
<li>
<blockquote>NVDA has a large moat to protect it that includes IP for its GPUs.&nbsp;SMCI has no moat and the barrier to entry for competitors is low.
</blockquote>
</li>
<li>
<blockquote>SMCI sales are to hyperscalers like Microsoft (MSFT), Amazon (AMZN), and Google (GOOG).&nbsp;The reason SMCI sales are booming is that they have availability of NVDA chips.&nbsp;As chips become more available to competitors, SMCI will not be able to sustain its sales growth rate.
</blockquote>
</li>
<li>
<blockquote>The momo crowd is buying SMCI due to lack of knowledge.&nbsp; However, there are many investors who understand and have the knowledge of SMCI&#39;s business.&nbsp;Many such investors are short selling SMCI.&nbsp; For the time being, short sellers are being overwhelmed by the YOLO crowd.
</blockquote>
</li>
<li>
<blockquote>Taking all of the above into consideration with the <a href="https://thearorareport.com/zyx-quantitative-screen">quantitative analysis screen</a> of the ZYX Change Method, in an optimistic case, the fair value of SMCI stock is $442 - $486.
</blockquote>
</li>
</ul>
</li>
</ul>
<ul>
<li>You may recall that The Arora Report was the first one to identify that artificial intelligence was real in 2022.&nbsp;At that time, momo gurus were selling AI stock.</li>
<li>A fortune is to be made in AI between now and 2030.&nbsp; SMCI shows that at times it will be treacherous.&nbsp;You need expert guidance.&nbsp; Equally important is building your knowledge of investments in AI.&nbsp;</li>
<li>FOMC will release its decision at 2pm ET today.&nbsp;FOMC is expected to keep interest rates unchanged.&nbsp;The key event is Powell&rsquo;s conference.&nbsp;The data shows that professional traders are expecting higher volatility during Powell&rsquo;s conference than at any other point over the last year.&nbsp;</li>
<li>In The Arora Report analysis, the near term direction of the stock market will come down to if objective Powell shows up or if political Powell shows up.&nbsp;&nbsp;
<ul>
<li>If objective Powell shows up, expect the stock market to go down. &nbsp;The reason is that the stock market is still levitating on hopium and not paying attention to the data.&nbsp;&nbsp;</li>
<li>If political Powell shows up, expect a rip roaring rally.&nbsp;</li>
</ul>
</li>
<li>We previously shared that prudent investors should pay attention to the Treasury refunding plan.
<ul>
<li>The Treasury plans to borrow $243B in the April to June quarter vs. $202B estimate.</li>
<li>The Treasury has just released the composition of the borrowing.</li>
<li>In The Arora Report analysis, the composition is more important than the increased amount of borrowing.&nbsp;Last time, the Treasury manipulated the borrowing to make stock and bond markets run higher.&nbsp;We will be carefully analyzing the just released new data.</li>
</ul>
</li>
<li>Automatic Data Processing Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/adp#NASDAQ">ADP</a>) is the largest private payroll processor in the country.&nbsp; It uses its data to give a glimpse of the jobs picture in advance of the official jobs report that will be released on Friday at 8:30am ET.&nbsp; ADP employment change came at 192K vs. 175K consensus.&nbsp; This indicates that the jobs picture is staying very strong.&nbsp; In The Arora Report analysis, the strength is at the low end while the job picture remains weak in IT and finance.</li>
</ul>
<h3>Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in Amazon.com, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>), Alphabet Inc Class C (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>), and Microsoft Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>).
In the early trade, money flows are neutral in Meta Platforms Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>).
In the early trade, money flows are negative in Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>), NVIDIA Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>), and Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>).
In the early trade, money flows are negative in SPDR S&amp;P 500 ETF Trust (ARCA:SPY) and Invesco QQQ Trust Series 1 (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>).
<h3>Momo Crowd And Smart Money In Stocks</h3>
The momo crowd is buying stocks in the early trade.&nbsp;Smart money is inactive in the early trade.
<h3>Gold</h3>
The momo crowd is buying gold in the early trade.&nbsp; Smart money is inactive in the early trade.
For longer-term, please see gold and silver ratings.
The most popular ETF for gold is SPDR Gold Trust (ARCA:GLD).&nbsp;The most popular ETF for silver is iShares Silver Trust (ARCA:SLV).&nbsp;
<h3>Oil</h3>
The momo crowd is selling oil in the early trade.&nbsp; Smart money is inactive in the early trade.
For longer-term, please see oil ratings.
The most popular ETF for oil is United States Oil ETF (ARCA:USO).
<h3>Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) has fallen below $60,000 on momo crowd selling.&nbsp; Recent momo crowd bitcoin buyers who fell prey to whales&rsquo; propaganda of buying on bitcoin halving and bought bitcoin above $70,000 are panicking and selling.&nbsp;Of course, if you listened to the podcast on bitcoin halving, you knew in advance that this was a high probability outcome.
<h3>Protection Band And What To Do Now</h3>
It is important for investors to look ahead and not in the rearview mirror.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp;The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp;If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h3>Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of seven year duration or less. Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter">Generate Wealth Newsletter</a>.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

SMCI

Super Micro Folly, Stock Market Direction Depends On Which Powell Shows Up – Objective Or Political

Good Morning Traders! In today&#39;s Market Clubhouse Morning Memo, we will discuss SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META, and TSLA.
Our proprietary formula, exclusive to Market Clubhouse, dictates these price levels. This dynamic equation takes into account price, volume, and options flow. These levels are updated every day and shared with all Clubhouse Members, prior to the opening of the market.
We recommend closely monitoring these stocks, and be prepared to leverage potential breakouts or reversals. As always, stay alert and ready to adjust your tactics based on the market&#39;s pulse to optimize your trading gains. Now, let&#39;s dive into the stock analysis:
<h3>SPDR S&amp;P 500 ETF Trust </h3>
Currently, the SPY&nbsp;(ARCA: SPY) is trading around the 500.17 mark. Bulls are looking for an upward movement to 500.91 initially. If this level is surpassed with strong momentum, the next target is 503.95, which we hope will act as a robust support level. Holding above 503.95 could pave the way for a move towards 506.71, and our optimistic target for the bulls today is 508.34.
On the downside, if the SPY fails to maintain 500.17 as support, we anticipate a bearish descent towards 498.93. A confirmed break below this point could lead the price down to 496.93. Should selling pressure intensify, we expect further decline to 494.27, with the lowest bear target set at 492.39 for the day.
<h3>Invesco QQQ Trust Series 1 </h3>
The QQQ index&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>) is positioning around 422.16. Bulls are aiming to sustain the price above 424.04, targeting 425.77 as a firm support level. If maintained, the buying momentum might push the price towards 426.64, potentially testing 427.32. The highest bull target for today is set at 428.50.
Conversely, if the QQQ cannot hold above 422.16, bears might take control, pushing the price down to 420.76. A breakdown from there could see a further dip to 419.19, and persistent selling might test 417.49. If this support gives way, the lowest bear target for the day is 416.23.
<h3>Apple Inc.</h3>
Apple (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) shares are trading near the 170.32 level. Bulls are eyeing 171.13 as a crucial support to hold, aiming for an upward trajectory towards 171.79 and potentially 172.45 if the upward momentum persists. The highest bull target for Apple today is 173.94.
Should Apple fail to keep 170.32 as support, the downside target is set at 168.99. Increasing sell-off could push the price further down to 168.00 and then to 167.09. A break below this level could lead to a test of the day&#39;s lowest bear target at 166.27.
<h3>Microsoft Corp.</h3>
Microsoft&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>) is being traded around 390.98. For bullish prospects, the aim is to maintain above 392.49, leading to a potential rally to 394.46. Holding this level could propel the stock towards 395.68, with a bull target of 400.30 for the day.
If Microsoft cannot sustain 390.98 as support, the bearish scenario involves a descent to 387.60. A break below this level might lead to further downside tests at 385.42, pushing towards 382.69. The lowest bear target for today is 381.64.
<h3>NVIDIA Corporation</h3>
NVIDIA (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) is hovering around 846.80. Bulls are looking to push the price to 852.61 and establish it as a solid support level. If successful, the next targets are 865.62 and 877.25, with a high bull target of 882.97 for the day.
If NVIDIA cannot maintain 846.80 as support, bears might drive the price down to 842.42. A failure there could see a further drop to 837.58 and, if selling pressure continues, a test of 833.50. The day&#39;s lowest bear target is 827.98.
<h3>Alphabet Inc Class A</h3>
Alphabet (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>) is currently positioned at 163.79. Bulls are aiming to secure 165.41 as support and push the price to 167.04. If bullish momentum continues, the target moves up to 169.34.
Should Alphabet&#39;s price fail to hold 163.79 as support, the bears are expected to push it down to 161.79. A break below this could bring 160.36 into play, with a further descent possibly leading to the lowest bear target of the day at 158.54.
<h3>Meta Platforms Inc</h3>
Meta&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>) is trading around 426.00. Bulls are aiming to maintain strength above 429.01, pushing higher to 432.39 and potentially 436.87. The bullish momentum could lead to a high target of 441.35 for the day.
On the downside, if Meta cannot hold 426.00 as support, the target shifts to 420.24. A breakdown there could lead to further drops to 417.87, and potentially down to the day&#39;s lowest bear target at 415.05.
<h3>Tesla Inc.</h3>
Tesla (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) is trading near 179.79. Bulls are aiming to push the price up to 182.53 and, with continued buying, possibly to 184.10. A broader market rally could see Tesla reaching 186.10, with a high bull target of 189.22 for the day.
If Tesla fails to hold 179.79 as support, bears might lead a decline to 176.34. Continued selling could push the price to 172.61, and if bearish momentum holds, down to the lowest bear target of 169.70 for the day.
Final Word:&nbsp; Today&#39;s trading session is stacked with pivotal economic data and events that could significantly impact market dynamics. The day kicks off with the ADP Non-Farm Employment Change at 8:15AM ET, which provides early insights into labor market conditions. Shortly thereafter, at 8:30AM ET, we will have the Quarterly Treasury Refunding Announcement, an event that could influence bond market movements. At 9:45AM ET, the Final S&amp;P Global Manufacturing PMI will be released, offering key indicators of economic health in the manufacturing sector. At 10AM ET, attention shifts to the Construction Spending report for March and the JOLTS Job Openings for March, alongside the ISM numbers for April, all of which could sway investor sentiment. The climax of today&#39;s economic calendar is at 2PM ET with the FOMC&#39;s Interest Rate Decision, followed by Fed Chair Powell&rsquo;s press conference at 2:30PM ET. Given the array of critical data and the potential for high volatility, traders are advised to maintain a heightened level of caution and strict discipline in their trading strategies. Best of luck navigating today&#39;s complex market environment!
The Morning Memo is curated by RIPS, a pro trader with years of experience in equities, options, and futures trading. RIPS is at the heart of the exclusive Market Clubhouse community, offering his insights, expertise, and real-time mentorship.
Start your day with a live daily market analysis, a carefully selected watch list, early access to the Morning Memo, and exclusive Market Clubhouse price levels, providing precise support and resistance indicators. When you become a member of Market Clubhouse, you will gain early access to the Morning Memo, just like this one, every single day&mdash;hours before it&#39;s published. You will also have access to a live stream with zero latency and screen sharing, enabling you to witness Rips executing his trades in real-time and sharing his exclusive trading plans, strategies, and live decision-making.
For a limited time during our special promotion, you can join RIPS and get a full access pass to Market Clubhouse for 7 full days for just $7. Check it out at <a href="https://marketclubhouse.club/7Days/" title="https://marketclubhouse.club/7Days/">https://marketclubhouse.club/7Days/</a> where you can trade live with him and tap into his wealth of knowledge and experience. You can also catch Rips on his live day trading streams every Monday-Friday at 8 am EST on the Market Clubhouse YouTube channel: <a href="https://www.youtube.com/@MarketClubhouse" title="https://www.youtube.com/@MarketClubhouse">https://www.youtube.com/@MarketClubhouse</a>.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

Market Clubhouse Morning Memo - May 1st, 2024 (Trade Strategy For SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META, And TSLA)

I'm entering my annual post-SIC decompression period. I say that only half-jokingly. The last two weeks were my version of a dive deep into the sea, where you see shocking things and endure crushing pressure.

Liminal Space

Will U.S. Economy Stabilize In Q2 2024 After 2 Quarterly Downshifts?

Weekly Indicators: Energy Prices Now Closer To Bottom Of 3-Year Range

Truist says stocks are in reset mode versus a fundamental retreat

The market had a pretty good week.  Prices and breadth both improved.  

Technical Market Report For - Saturday, May 4

On Wednesday, Jerome Powell's speech following the conclusion of the latest FOMC meeting provided a more "dovish" than expected message.

Stagflation - Myth Or Reality?

During the fund-flows week that ended May 1, 2024, investors were overall net purchasers of fund assets (including both conventional funds and ETFs) for the second straight week, adding a net $22.0 billion.