S&P futures are trading around the unchanged mark as traders wait for jobless claim data. Tech stocks are once again gapping higher as investors rush into the sector in a FOMO type trade.
Since the start of the quarter, there has been a surge in stocks like TSLA, AMZN, NVDA, SQ and countless others. The question is not if these stocks will find gravity, rather it’s a matter of when and what the catalyst will be.
The rise of COVID-19 case does not phase the Nasdaq stocks, but they will have to face earnings season in the coming weeks. The high flyers could see some profit taking in the coming weeks as traders take profits into EPS.
S&P Futures Trading Levels
The S&P futures currently sit at 3165, about 20 handles off of Tuesday highs.
Support levels for the day will be 3158 and 3130.
Upside resistance is 3169 and 3198.
The current S&P environment is trending upwards, but it’s a slow grind. The current Nasdaq environment is straight up. Markets are being hampered by COVID-19 headlines, with the reactionary down moves are being bought.
Three Stocks to Watch
WBA- Walgreens trading 3% lower premarket after the company reported a Q3 EPS miss of $0.83 v the $1.14 expected. While the company did raise its dividend, it guided FY20 lower. The stock is trading only 15% off its 2020 lows.
HELE- Helen of Troy reported a big top and bottom line beat on Q1 EPS. The stock is bid about 7% higher premarket, which puts it above 2020 highs.
SQ– Trading slightly lower after a downgrade from Cowen. The company has been one of the hottest stocks of late, up over 25% in July.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>