It will be a potentially significant week for stocks with an FOMC meeting on Wednesday, along with first quarter GDP, and the ISM manufacturing report on Friday. Then throw in earnings from Alphabet, Microsoft, Apple, Facebook, and Amazon and it could lead to a significant shift for stock prices.
S&P 500
Taking another look at the S&P 500 (SPY) has led me to this rising wedge pattern that seems to be a little more apparent after this week’s trading action. The S&P 500 was down about 1.3% this past week and has virtually gone nowhere since April 9 at this point, so one hasn’t “missed” much of anything. However, I think that is about to start changing. The RSI is flattening out, and even showing signs of weakening. Meanwhile, a rising wedge pattern is bearish and suggests a pretty sizable decline may soon be coming for the S&P 500, back to gap a fill around 2470.
Alphabet
I think Alphabet (GOOGL) is likely to miss earnings estimates this quarter, as it “hedge fund/trading” unit likely underperforms and takes some mark-to-market losses in the first quarter. As a result, the stock sinks to around $1,150, because investors only look at the EPS, and not what goes into the EPS.
Apple
Meanwhile, Apple (AAPL) is likely to give lackluster fiscal third quarter guidance as iPhone and wearable sales are very weak, and service revenue can’t make up for that slowdown. I think Apple drops back to $235.
Amazon
Amazon (AMZN) is likely to post a steady revenue beat but will miss on the bottom line and chooses to spend on the future. Meanwhile, second-quarter guidance will be conservative, and with the stock up around 30% this year, it pulls back to 2,180.
Microsoft
Microsoft (MSFT) will deliver strong cloud and office growth. But its hardware business will take a hit, and that likely disappoints the street with the stock pulling back to around $162.
Tesla
Elon Musk will reaffirm Tesla’s (TSLA) guidance of comfortably exceeding 500,000 units deliveries in 2020, and the stock will climb to around $850.
Facebook (FB) will likely see weaker revenue and rising cost, and the market won’t like that one bit, and I think the stock is likely to drop to around $166.
Qualcomm
With iPhone sales slipping, Qualcomm (QCOM) will slip and fill the gap at $65, as I noted in this premium story this week. Premium content – Bearish BettingContinues In Qualcomm
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