Weekly Outlook
Is there a inventory market curse in Philadelphia? Whereas hundreds of thousands are celebrating the Eagles’ victory final evening, others have identified an attention-grabbing coincidence for markets to underperform when the Metropolis of Brotherly Love secures a championship.
As an illustration, there’s the 1929 inventory market crash when the Philadelphia Athletics gained the World Collection, together with the 2008 monetary disaster when the Phillies gained the World Collection. Then there’s the final Eagles’ Tremendous Bowl victory in 2018, when the had its worst 12 months since 2008.
Do the championship winners have an effect on inventory markets? After all not! And it wouldn’t be advisable to make funding choices primarily based on sports activities championships. However the historical past positive is attention-grabbing.
As for this week, just a few notable earnings stand out. They embody (NYSE:) and (NYSE:) on Tuesday, Reddit and (NASDAQ:) on Wednesday, and (NASDAQ:) on Thursday.
As for financial information, just a few notable reviews stand out. They embody the report on Wednesday and on Friday. These reviews will give us the most recent replace on inflation and the way the buyer is doing.
The setup — McDonald’s)
McDonald’s Company (NYSE:) reported this morning, lacking on income expectations and reporting roughly in-line earnings outcomes. Regardless of the blended headline figures, shares are inching increased in pre-market buying and selling.
Keep in mind, the inventory will commerce primarily based on the corporate’s outcomes, in addition to administration’s convention name.
The latest inventory motion has been promising, as MCD cleared downtrend resistance (the blue line) final week. Nevertheless, $300 has been a key resistance stage for the inventory for a number of years.
Chart as of the shut on 2/7/2025. Supply: eToro ProCharts, courtesy of TradingView.
MCD is buying and selling just under $300 in pre-market buying and selling. Regulate this stage right this moment and this week. If shares can clear this space, extra bullish momentum might ensue.
On the flip aspect, if shares are unable to clear $300, then this stage might stay resistance and momentum might wane.
Choices
For some traders, choices could possibly be one various to invest on MCD. Keep in mind, the danger for choices patrons is tied to the premium paid for the choice — and shedding the premium is the total danger.
Bulls can make the most of calls or name spreads to invest on the additional upside, whereas bears can use places or put spreads to invest on the positive aspects really fizzling out and MCD rolling over.
What Wall Road Is Watching
AMZN – Shares of Amazon (NASDAQ:) fell about 4% on Friday after the corporate reported . Regardless of beating earnings and income expectations, the agency’s cloud outcomes have been barely under analysts’ expectations, whereas its outlook was barely under estimates as effectively.
META – On Friday, Meta (NASDAQ:) prolonged its profitable streak to a formidable 15 consecutive periods. Shares are up virtually 17% throughout this stretch because the inventory continues to chug increased. The final down day for Meta was on January sixteenth.
Disclaimer:
Please word that because of market volatility, a number of the costs could have already been reached and eventualities performed out.
