Back to top

Image: Bigstock

Stocks Look to Take A Break

Read MoreHide Full Article

The recent run higher in stocks over the last few weeks looks to take a break, as the S&P futures are trading under the 3200 level, currently just under 1%.

A couple of small factors are adding up to create the negative tone. In Asia, we saw some tensions flare up in the Korean Peninsula as North Korea completely cut off communications with South Korea. Additionally, trade tensions with China and Australia are intensifying and the China/Taiwan headlines are becoming louder.

In Europe, Germany exports were down 25% month over month in April.

Here at home, we are seeing a reversal of some of the excitement from yesterday. Boeing traded up to $239 last night and is now down almost 4% to the $222 level. The airlines and casinos that have been leading the excitement over the last few sessions and are also trading lower.

Traders should keep an eye on rotation into tech and out of the names that have had recent success. Divergence between the Nasdaq and the S&P has been a trend for most of the year and there is no reason to expect that will change in the short-term.

S&P Futures Trading Levels

The S&P futures currently sit at 3197. Support levels for the day will be 3190 and 3169

Upside resistance is 3213 and 3230.

The current environment trending higher, but we are in overbought conditions.

Three Stocks to Watch

NKLA- The last week has seen shares of Nikola, who some are hoping to become the next Tesla, go from $25 to $90. The move comes simply on a name change of the company and more awareness of the company brand.

COUP- Earnings out last night showed a nice beat and raise. The stock is trading down about 5% premarket as traders sold the print last night. Coupa had a big run higher, so profit taking makes sense. However, we have seen tech stocks reverse overnight trading many times this quarter, so look out for a potential move into the green off the open.

SFIX – The company disappointed investors with a miss on both the top and bottom line. The stock has been on fire, raising over 100% from the March lows. However, EPS will likely cause a setback as the stock is trading lower in the premarket by almost 7%.

Zacks’ Single Best Pick to Double

From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.

Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.

Click Here, See It Free >>


In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Stitch Fix, Inc. (SFIX) - free report >>

Nikola Corporation (NKLA) - free report >>

Coupa Software, Inc. (COUP) - free report >>

Published in