Market review from UTEX — week 15
Markets have bounced back. Trump's new ultimatum expires on Wednesday. Awaiting inflation data.
Major U.S. indices staged a solid rebound during the shortened week. The SPY gained 2.45%, while the Nasdaq rose 3.13%. Intel was up 14%, Advanced Micro Devices gained 6%, and Netflix, Meta, and Google each rose 5%. Nike lost 15% following its earnings report; the last time its shares traded below $45 was in 2014.
Bitcoin gained 1.5% over the past seven days and is currently trading around $69,500. Ethereum rose 3%, hovering near $2,160.
On Sunday, Donald Trump issued another ultimatum to Iran: if no deal is reached or the Strait of Hormuz is not opened by 8:00 PM ET on April 7, “all Hell will reign down” on the country.
On Thursday, the Personal Consumption Expenditures (PCE) data will be released — the Fed's preferred inflation gauge for shaping interest rate policy. On Friday, the March Consumer Price Index (CPI), a key inflation indicator, will be published.
Next week, the largest U.S. banks will kick off a new earnings season. In the coming days, results are expected from Delta Air Lines, Constellation Brands, RPM International, Levi Strauss, and Aehr Test Systems.
Top ideas for trading this week
🔴 Aehr Test Systems (AEHR). Report after the close on April 7. A supplier of semiconductor testing equipment. On Friday, the company announced it received an order from a data center networking equipment manufacturer. The stock rose 28% over the week and is already up 120% for the quarter. Given its relatively small market cap, expect high volatility following the report.
🔴 Tema Space Innovators ETF (NASA). On March 31, Tema ETFs launched the first fund fully dedicated to the modern space economy. The Tema Space Innovators ETF gains exposure to SpaceX via an SPV from Forge, a Charles Schwab subsidiary, with the position making up about 10% of the fund’s assets. Other companies in this ETF include AST SpaceMobile (7%), Rocket Lab (6.8%), Planet Labs (6%), and EchoStar (5%). Suitable for medium- to long-term investors who believe in the growth of space companies.
🔴 Exxon Mobil (XOM), Chevron (CVX), ConocoPhillips (COP). Shares of the largest U.S. oil companies pulled back slightly last week, while volatility in the sector remains high.
🔴 Strategy (MSTR), Coinbase Global (COIN), BitMine (BMNR). The rebound in crypto-related stocks that began in February and the first half of March has fizzled out. However, Michael Saylor continues to buy bitcoin, and BitMine is increasing its ETH position. If the market moves lower and sellers apply pressure, we could see a sell-off. On the other hand, if a second wave of the rebound begins, current prices may offer a decent entry point.
🔴 Micron Technology (MU), SanDisk (SNDK), Western Digital (WDC), Seagate Technology (STX). Shares of memory chip manufacturers remain among the most volatile on the market.
🔴 High risk — for pros.
Profitable deals!
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