Market review from UTEX — week 24

Major U.S. indices ended the week in the red: the SPY lost 2.5%, and the Nasdaq fell 4.5%. Most of the movement occurred on June 5, despite a strong jobs report. By the end of Friday, the Nasdaq had dropped 4.8%, its worst daily result since “Liberation Day” in April of last year.

The chipmaker sector fell the hardest: Micron Technology -13%, Intel -11%, AMD -11%, Nvidia -6%. Tesla lost 6%, while Meta fell 5.5% amid rumors of a large-scale secondary stock offering.

The panic spread to digital assets. Bitcoin fell below the psychological $60,000 level, dragging down crypto stocks MicroStrategy (-7%) and Coinbase (-7%). Bitcoin is now attempting to bounce back from that level, trading at $61,500.

Meanwhile, the largest U.S. banks closed the week with solid gains. Wells Fargo, JPMorgan Chase, Citigroup, and Bank of America rose 4-5%, with Friday's sell-off barely affecting them.

Some analysts attribute the collapse to profit-taking and argue that fundamentally strong technology companies will recover and lead markets higher by year-end. Skeptics doubt whether giants spending hundreds of billions on AI will be able to recoup their investments.

“I think if we're in a bubble, we're still early stages,”  Warren Pies, co-founder of 3Fourteen Research, told CNBC on Friday. According to him, six stocks in the Nasdaq 100 have risen more than 400% over the past year, a far cry from the peak of the dot-com bubble, when there were 22 such stocks. “I think there's way too much pessimism and worry at this point in time,” Pies said, “and the metrics don't support it.” 

Consumer inflation (CPI) data will be released on Wednesday, and producer inflation (PPI) on Thursday. On Friday, June 12, the most anticipated and largest IPO in history will take place as SpaceX goes public on the stock exchange under the ticker SPCX.

Oracle and Adobe will release their results this week. Other interesting reports include: Casey's General Stores, SailPoint, Lennar, RH, The J.M. Smucker Company, and The Campbell's Company.

Top ideas for trading this week

🔴 Adobe (ADBE). Report on June 11 after market close. Shares have fallen 40% over the past 12 months amid increasing competition in generative AI. Mizuho analyst Gregg Moskowitz recently downgraded the company from “Outperform” to “Neutral.”

“Increased competition in the consumer/SMB segments threatens ADBE's long-term value, along with a lack of a clear catalyst for share growth and the risk of margin erosion,” he explains. 

Moskowitz does not expect any explosive revenue growth over the next two to three years. Support level is $225, and at first glance, medium-term prices look decent, but given Friday's sell-off, there's no need to rush; it's better to wait for the report. The bottom may not have been reached yet.

🔴 RH (RH). Report on June 11 after market close. A retailer of luxury furniture and home furnishings. The company has been hit hard by Trump's tariffs. In January 2025, shares were worth $450; now they are three times cheaper. RH traditionally reacts strongly to earnings, often delivering a large gap and intraday movement. Definitely worth watching.

🔴 FuelCell Energy (FCEL). Report on June 8 before market open. A developer and manufacturer of stationary fuel cell power plants. A highly speculative stock, something like the Virgin Galactic of the alternative energy space. The company has been unable to turn a profit for years. Earnings reports have often shown revenue declines (sometimes up to 25% in a quarter), triggering sell-offs. The company has repeatedly conducted secondary offerings, diluting shareholder stakes, and reverse splits to avoid delisting from Nasdaq. But over the past month, FCEL has risen 128% due to expectations that hydrogen fuel cells could become a power source for AI data centers. Over 80% of FuelCell's order backlog is focused on this segment. Not recommending a buy, but there could be strong moves on the day of the report and for a few days after.

🟡 Campbell's Company (CPB). Report on June 8 before market open. The company produces and sells food products. No AI — a real-sector business since 1869, with a 7% annual dividend and a 36% decline in shares over 12 months. Support at $20 has held since mid-April. Investors are waiting for signs of stabilization in the snacks business. After a disappointing first half, management had to lower guidance. Medium-term prices look decent, with the stock not far from support. A dividend play if the company resolves its issues and shares don't fall below $20. Since 2009, CPB has consistently traded above $25, reaching $65 in 2016.

🔴 Space. The SpaceX IPO takes place this week. After a long rally, space stocks were among the top decliners last week, losing 15%-35%. It's unknown how they will react to the IPO, but prices have become much more attractive for entry.

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

Trade what suits you best:

🟡 Medium risk — for traders with limited experience.

🔴 High risk — for professionals.

Profitable deals!

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