Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Markets Flip as Earnings Season Heats Up

by July 22, 2023
July 22, 2023
Markets Flip as Earnings Season Heats Up

Last week, the number of companies reporting earnings expanded, with heavyweight names Tesla (TSLA) and Netflix (NFLX) getting the most attention. Both companies sold off sharply on Thursday despite beating estimates. The selling spread to other Nasdaq stocks after two heavyweight Semiconductor companies signaled continued weakness in the chip market.

Stocks from beaten-down areas of the market were treated quite differently, however, with healthcare giants Johnson & Johnson (JNJ) and Abbott Labs (ABT) spiking higher after beating guidance and raising their full-year outlook. Bank stocks — another area that’s underperformed amid a crisis — were the biggest winners, as they continued to rally on earnings even if they missed views.

The result was a week where the worst performing sectors year-to-date were last week’s top performeres, while winning sectors were at the bottom.

Could it be that investors are paying attention to valuations as earnings reports roll in? Next week will certainly test this possibility, with four mega-cap companies due to report while a host of additional bank and healthcare companies release results. Microsoft (MSFT), Meta Platform (META), Alphabet (GOOGL), and Amazon (AMZN) are also seeing a rebalance in their Nasdaq 100 weighting on Monday, in addition to their reports later in the week.

Daily Chart of Healthcare Sector

Above is a daily chart of the Healthcare sector after last week’s 3.5% rally pushed the group out of a 3-month base on heavy volume. With the sector poised to trade higher, I believe that pharmaceutical giant Novo Nordisk (NVO) deserves a close look after last week’s move back above resistance at its 50-day moving average.

NVO sells two weight loss drugs while also working on additional treatments that are seeing positive results in trial studies. Today, Wall Street firm Morgan Stanley raised their forecast for annual sales of weight loss drugs to $77 billion, as patient demand for the medicines has outstripped supply amid a social media frenzy.

Daily Chart of Novo Nordisk (NVO)

NVO’s downtrend reversal occurred on above-average volume, while the MACD has just entered positive territory. Both positive characteristics join an already-positive RSI, as can be seen on the daily chart above.

Earnings season has always been a critical period for the markets, as not only is investor sentiment revealed based on responses to results, sector rotation such as last week’s move into Healthcare can take place. If you’d like to be alerted to these critical shifts, use this link here to trial my twice weekly MEM Edge Report. We alerted subscribers to January’s move into Semiconductors while highlighting Nvidia as a buy candidate. The stock has gained 158% since then!

Warm Regards,

Mary Ellen McGonagle, MEM Investment Research

0
FacebookTwitterGoogle +Pinterest
previous post
MEM TV: Tech Stock Decline Spooks Market
next post
Alabama lawmakers reject 2nd Black majority Congressional district, increase to 40% after Supreme Court ruling

You may also like

S&P 500 Has Broken Below Key Level –...

August 27, 2022

The Stock Market In 3 Charts: Market Breadth,...

November 22, 2023

Rules-Based Money Management – Part 7: The “Dancing...

May 30, 2024

Top Ten Stocks in Accumulation Phase

October 22, 2022

Market Rotation and Cap-Weight Dynamics: A Closer Look

February 21, 2025

The Kids: Semiconductors, Biotechnology, Regional Banks

October 20, 2023

Size (matters) Over Style!

December 17, 2023

This Semiconductor ETF Might Signal a Chip Recovery

November 16, 2022

Do Earnings Warnings Really Matter?

September 18, 2022

Find the Strongest Price Charts with the StochClose...

March 5, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved