Market Insights

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Sizing Up the S&P 500

• Index holds recent channel, weekly low from 2/5
• Wilder’s RSI remains near overbought
• Prices hold rising 10-day MA
• Index rose in 14 of 15 weeks when this week began
• Fed minutes on 2/21 are potential risk

Key News

• Nvidia (NVDA) in focus before earnings next Wednesday 2/21 (post market)
  • Citi raises estimates and price target ($850), says shorter lead times could result in more sales
  • Mizuho raises price target from $625 to $875 based on AI leadership
  • Susquehanna raises price target from $625 to $850. Sees “long-tail” of companies needing to invest this year.
  • NVDA passes GOOGL in market cap, vies with AMZN
• Uber Technologies (UBER) rises on buyback
• Robinhood (HOOD) beats on strong monthly users. Is bull market awareness spreading?
• Lyft (LYFT) rallies on profitability improvement
• CNH Industrial (CNHI) reveals price increases across machinery
• January core CPI +0.4% vs +0.3% estimate, led by auto insurance, shelter and medical care
• EIA crude oil inventories +12mln barrels vs 2.6mln est.
• Gene Munster: Nasdaq could double or triple in next 2-3 years on AI growth.
• Jonathan Krinsky of BTIG: Momentum could shift from large-cap growth to Russell 2000 small caps this week.
• HSBC upgrades HPQ before earnings on 2/28
• Earnings overview:
  • LSEG (former Thomson Financial): Q4 earnings +9% vs forecast of 4.7% when year began
  • FactSet: S&P 500 P/E ratio over 20x (1st time since February 2022) as investors reward earnings beats more than average

Sector Watch

• Chips, retailers, biotechnology, small caps outperforming in the last week.
• Solar energy bouncing after major decline
• Crypto-related stocks rally: RIOT, CLSK, MARA, COIN
• Gold miners, energy lag

Mover of the Week: Viking Therapeutics

• Broke 2023 high after earnings beat on 2/7
• Stifel raises price target from $30 to $35, citing metabolic disease treatments
• VKTX +148% since 12/1, when Roche acquired rival Carmot
• Potential treatments in obesity and non-alcoholic steatohepatitis (NASH), non-alcoholic liver disease
  • Both conditions have potential large global markets

Signals Scan

• Huntington Bancshares (HBAN) holds 50-day MA, August high
• Bank of America (BAC), Wells Fargo (WFC) holding 50-day MA
• AT&T (T), Verizon Communications (VZ) near bottom of Keltner channels
• Kraft Heinz (KHC) falls under 200-day MA

Upcoming Events

• Thu 2/15:
  • Earnings: AMAT, COIN, ROKU, DKNG, DASH
• Fri 2/16: PPI, housing starts/building permits
• Mon 2/19: Presidents’ Day
• Tues 2/20:
  • Earnings: WMT, PANW, HD
• Wed 2/21: Fed minutes
  • Earnings: NVDA, ETSY, VRT
• Thu 2/22: Oil inventories, jobless claims

Using the Platform

• “MA X Days Since” custom indicator displays the candles since two moving averages crossed
  • Faster MA above slower MA shown with positive outputs.
  • Works in RadarScreen, Scanner and Charts

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