Pre-opening Comments for Thursday May 2^nd

U.S. equity index futures were higher this morning. S&P 500 futures were up 33 points at 8:35 AM EDT.

Index futures were unchanged following release of the March U.S. Trade report at 8:30 AM EDT. Consensus was a deficit of $68.00 billion versus a deficit of $68.90 billion in February. Actual was a deficit of $69.4 billion.

Qualcomm advanced $5.74 to $169.70 after reporting higher than consensus quarterly earnings.

Door Dash dropped $14.32 to $113.00 after reporting a higher than consensus quarterly loss.

Carvana added $20.85 to $108.01 after reporting higher than consensus quarterly earnings.

eBay dropped $2.56 to $48.50 after lowering second quarter guidance.

 

Responses to the FOMC Announcement at 2:00 PM EDT

The Federal Reserve maintained its Fed Fund Rate at 5.25%-5.50%. Market responses included the following:

Broadly based U.S. equity indices initially moved higher after 2:00 PM, but sold off in late trading to close lower

U.S. Dollar Index ETN dropped sharply after 2:00 PM, but recovered to virtually unchanged.

Conversely, the Canadian Dollar moved sharply higher, but closed virtually unchanged.

Price of Long term U.S. Treasury Bonds initially moved higher, but closed virtually unchanged

U.S. Bank ETFs: KBE and KRE initially moved higher, but closed virtually unchanged.

Gold bullion ETN $GLD initially moved strongly higher, but closed slightly higher. Gold equity ETFs (GDX and GDXJ) followed a similar pattern.

Technical Notes

Gasoline ETN $UGA moved below $69.76 and $69.45 completing a short term Head & Shoulders pattern.

CVS Health $CVS an S&P 100 stock moved below $63.22 and $62.88 to a three year low extending an intermediate downtrend.

Starbucks $SBUX a Dow Jones Industrial Average stock moved below $84.29 to a 21 month low extending an intermediate downtrend

Marriott $MAR a NASDAQ 100 stock moved below $231.51 extending an intermediate downtrend.

CDW Corp $CDW a NASDAQ 100 stock moved below $234.45 completing a Head & Shoulders pattern.

BHP $BHP one of the world’s largest base metals producers moved below $55.09 extending an intermediate downtrend.

Constellation Software $CSU.TO a TSX 60 stock moved below Cdn$3,543.00 completing a Head & Shoulders pattern

CGI Group $GIB.A.TO a TSX 60 stock moved below Cdn135.70 extending an intermediate downtrend.

 

Trader’s Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for May 1^st 2024

Green: Increase from previous day

Red: Decrease from previous day

Source for all positive seasonality ratings: www.EquityClock.com

 

Commodities

Daily Seasonal/Technical Commodities Trends for May 1^st 2024

Green: Increase from previous day

Red: Decrease from previous day

 

Sectors

Daily Seasonal/Technical Sector Trends for May 1^st 2024

Green: Increase from previous day

Red: Decrease from previous day

Links offered by valued providers

Gain AN EDGE Over Other Traders with ADX/DI: Joe Rabil

https://www.youtube.com/watch?v=xz8NzSHTLAg

 

Charting Big Earnings Movers & How Markets Could React to the Fed: Dan Nathan and Guy Adami

https://www.youtube.com/watch?v=UMTRnUy41Ww

 

S&P 500 Momentum Barometers

The intermediate term Barometer dropped 1.20 to 39.20. It changed back from Neutral to Oversold on a drop below 40.00.

The long term Barometer dropped 1.80 to 70.20. It remains Overbought.

 

TSX Momentum Barometers

The intermediate term Barometer dropped 0.89 to 51.34. It remains Neutral.

The long term Barometer dropped 1.34 to 65.18. It remains Overbought.

Disclaimer: Seasonality ratings and technical ratings offered in this report and at

www.equityclock.com are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed

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