Gains Retracting Continue. Market Sentiment Somewhat Negative

The S&P 500 remained relatively unchanged, while the Nasdaq Composite (COMP) saw a slight decline of 0.2%. The Russell 2000 index reported a 0.5% decrease.

Yet we saw the Dow Jones Industrial Average (DJIA) experienced a gain of 0.4%, rising by 172 points. Market is trading within narrow ranges and started off low but gradually recovering although the overall market sentiment was somewhat negative.

Uber declined significantly by 5.7% in the S&P 500 after its earnings went below expectations. This does not affect the S&P 500 industrials, in fact we saw a small gain in this sector. Information Technology, Financials and Utilities sectors ended the session positively. Real Estate and Materials sectors ended in the negative.

Treasury yields saw a slight increase following a $42 billion 10-year note sale which attracted less interest compared to a previous auction. The 10-year note yield rose by three basis points to 4.49%, and the 2-year note yield increased by one basis point to 4.84%.

The weekly MBA Mortgage Applications Index rose by 2.6%. Wholesale Inventories dropped by 0.4% in March, aligning with expectations. The EIA Crude Oil Inventories report indicated a decrease of 1.36 million barrels.

Key economic reports scheduled for Thursday include the Weekly Initial Claims, with an expected consensus of 213,000, and the Weekly Natural Gas Inventories report.

Commodity prices varied with crude oil increasing, while natural gas and copper posted slight declines. Gold and silver prices showed minor adjustments.

Robinhood has a nice increasing demand buying and MACD is trending upside, this should help to push the price higher especially when Robinhood earnings have exceeded the expectations and also robust growth in their transaction-based revenues.

Despite a strong earnings, but ARM performance after hours drop by more than 8%, this could be due to their annual revenue forecast failed to impress investors, so one lesson learned from earnings is we need to look at forecast both short term and long term.

ARM has a nice demand buying prior to the earnings report, but with the investors not impressed by the annual revenue forecast. This stock is to be shorted.

With the earnings released till date, we could see a similar pattern where investors are now forecasting on short term and long term forecast of the company earnings, this might have change on what investors used to look at past earnings to determine the potential of a stock to trade or invest.

For example Palantir and ARM holdings are 2 which I can resonate.

Appreciate if you could share your thoughts in the comment section whether you think earnings forecast is something we need to look out for future release for potential stocks to trade?

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.