Weekly Outlook
Is there a inventory market curse in Philadelphia? Whereas tens of millions 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.
For example, there’s the 1929 inventory market crash when the Philadelphia Athletics received the World Collection, together with the 2008 monetary disaster when the Phillies received the World Collection. Then there’s the final Eagles’ Tremendous Bowl victory in 2018, when the had its worst yr since 2008.
Do the championship winners have an effect on inventory markets? In fact not! And it wouldn’t be advisable to make funding selections based mostly on sports activities championships. However the historical past certain is attention-grabbing.
As for this week, a number of notable earnings stand out. They embrace (NYSE:) and (NYSE:) on Tuesday, Reddit and (NASDAQ:) on Wednesday, and (NASDAQ:) on Thursday.
As for financial information, a number of notable stories stand out. They embrace the report on Wednesday and on Friday. These stories 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 combined headline figures, shares are inching increased in pre-market buying and selling.
Keep in mind, the inventory will commerce based mostly on the corporate’s outcomes, in addition to administration’s convention name.
The current inventory motion has been promising, as MCD cleared downtrend resistance (the blue line) final week. Nevertheless, $300 has been a key resistance degree 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 slightly below $300 in pre-market buying and selling. Control this degree right now 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 degree might stay resistance and momentum might wane.
Choices
For some buyers, choices may very well be one various to take a position on MCD. Keep in mind, the danger for choices patrons is tied to the premium paid for the choice — and dropping the premium is the complete danger.
Bulls can make the most of calls or name spreads to take a position on the additional upside, whereas bears can use places or put spreads to take a position on the positive factors truly fizzling out and MCD rolling over.
What Wall Avenue 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 had been barely under analysts’ expectations, whereas its outlook was barely under estimates as properly.
META – On Friday, Meta (NASDAQ:) prolonged its successful streak to a powerful 15 consecutive periods. Shares are up nearly 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 few of the costs might have already been reached and situations performed out.
