Market review from UTEX — week 21

For the seventh consecutive week, the SPY closed in the green, up +0.21%. The Nasdaq edged lower by 0.33%. Donald Trump made an official visit to China. But the two-day summit in Beijing ended with only a few statements from the superpowers, which caused indices to decline on Friday.

Weekly gain leaders: Cisco Systems (+22%), Philip Morris (+10%), ExxonMobil (+9%).

Decliners among large companies: Intel (-12%), SanDisk (-9%), Qualcomm (-8%), Advanced Micro Devices (-6%). These stocks had risen more than 50% over the past month, so a correction was overdue.

Bitcoin was weaker than stocks, losing 3% over seven days. Ethereum fell 6%.

The minutes from the Fed's previous meeting will be released on Wednesday. Investors will be looking for signs of the central bank's concern over persistent inflation. Jerome Powell's term as Fed Chair expired on May 15. He is handing the position over to Kevin Warsh.

The main event of the week is Nvidia's earnings report — the world's most valuable company by a wide margin. The report will show how sustainable the business is for AI companies and related industries, from computing components to data centers and energy sources.

In addition to Nvidia, reports are due from Baidu, Home Depot, Keysight Technologies, TJX Companies, Lowe's, Target, Walmart, Deere & Company, and Take-Two Interactive.

Top ideas for trading this week

 🔴 Target (TGT). Report on May 20 before market open. This will be the first full quarter under new CEO Michael Fiddelke. Investors are waiting for the first markers of his long-term strategy: investments in store layout renovations, product assortment changes, and digital technology. They suggested taking a closer look at TGT for the medium term in November and March. Prices are still quite good, and the news flow around the company is moderately positive.

🔴 Analog Devices (ADI). Report on May 20 before market open. One of the world's largest manufacturers of chips and semiconductor components. The stock has risen 72% over six months, but without sharp intraday movements. The current earnings season has seen very strong reactions to results from companies in the semiconductor sector. We expect ADI will be no exception.

🔴 Workday (WDAY). Report on May 21 after market close. A provider of HR management software. The stock has fallen 44% over six months. One of the pressure factors is new corporate tools from Anthropic. Investors fear that automation of business processes and the introduction of AI agents will reduce demand. Solid support in the $110–115 range. Prices seem quite reasonable for the medium term, but it's better to wait for the report and the company's forecasts. The February forecast for subscription revenue for 2027 was quite subdued.

🔴 Take-Two Interactive (TTWO). Report on May 21 after market close. A developer and publisher of video games, including GTA, Civilization, and Zynga. +10% for the week on rumors that pre-orders for GTA VI will open in the coming days, but there has been no official confirmation yet. The release was originally scheduled for 2025, then postponed to May 2026, then to November 19. We expect increased volatility in the stock after the report.

🔴 Space. According to new data from Reuters sources, SpaceX plans an IPO on Nasdaq as early as June 12, with shares trading under the symbol SPCX. Musk aims to raise about $75 billion at a valuation of approximately $1.75 trillion. Space companies' stocks have been among the most volatile on the market recently.

• Intuitive Machines (LUNR)
• AST SpaceMobile (ASTS)
• Rocket Lab (RKLB)
• Planet Labs (PL)
• Tema Space Innovators ETF (NASA)

High risk — for pros.

Profitable deals!

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