Market review from UTEX — week 18

Last week was one of the best in the past three years for the American markets. SPY gained 4.6%, Nasdaq — 6.4%, but this was mostly built on speculation.

Trump stated that the countries are negotiating a deal. China, however, denies this and reiterates that it is only ready for negotiations when the parties can conduct dialogue with mutual respect.

Among the largest companies, the biggest gains were Palantir (+20%), Tesla (+18%), and Netflix (+13%). Among smaller companies, notable performers were: Reddit (+23%), Robinhood (+20%), and Coinbase (+20%).

Since last Tuesday, Bitcoin has been trading above the $90,000 mark and has not fallen below it since, consolidating in the $91,500–$95,500 range.

Preliminary U.S. GDP data for the first quarter will be released on Wednesday, along with an especially key inflation measure for the Fed — the PCE Price Index. Unemployment data will be published on Friday.

Earnings season is in full swing, with four of the "Big Seven" companies set to report results: Microsoft, Meta, Apple, and Amazon. In addition, Visa, Coca-Cola, Eli Lilly, Mastercard, McDonald's, ExxonMobil, and many others will also announce earnings.

And, naturally, expect an endless stream of comments and statements from Trump — the week promises to be very volatile. If the parties reach tangible progress and specifics in negotiations with China, the markets will have a strong chance of returning to their all-time highs in the near future.

Top 5 stocks for trading this week

🟡 Robinhood (HOOD) — Earnings report on April 30 after market close. Over the last quarter, the stock dropped from $65 to $30, then bounced back to $50. Would be great to see another dip to buy it mid-term — but that may not happen.

🟡 Estee Lauder (EL) — Earnings report on May 1 before the market opens. The cosmetics giant has lost 60% of its market cap over the past year, struggling especially in the Asia-Pacific region. Analysts expect Estee Lauder to report $1.35 earnings per share for fiscal year 2025 — a 47.9% drop compared to the previous year. They also anticipate a recovery in fiscal 2026. Still, it’s best to wait for the company’s updated outlook.

🟡 Roblox (RBLX) — Earnings report on May 1 before market open. Developer of the Roblox gaming platform. We often suggest to consider this stock for mid-term portfolios. Just like with Robinhood, we’d like to see a dip after the report to buy at better prices.

🔴 Reddit (RDDT) — Earnings report on May 1 after market close. For thrill-seekers — a highly volatile stock that can swing wildly intraday. Also worth considering for the mid-term: it dropped from $230 to $80 during the quarter and is now at $118, so there’s plenty of potential to rebound.

🟡 First Solar (FSLR) — A solar panel manufacturer and solar energy systems provider. Earnings report on April 29 after market close. The green energy sector traditionally underperforms under Republicans compared to Democrats. However, First Solar is launching new production facilities in Alabama and Louisiana, and recent tariff hikes on solar panel imports from Southeast Asia give it a major competitive edge since it manufactures domestically. The stock price is near yearly lows. An interesting med-term pick.

Trade what suits you best:

🔴 high risk, for the pros;

🟡 medium risk, for traders with little experience.

Profitable trades!

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