Markets pushed significantly higher on Thursday as two Mag 7 names reported earnings
Below are highlights from the NDW Morning Update Video for the morning of 07/31. Access the the video on the NDW Morning Update Video page.
- Markets pushed significantly higher on Thursday, with the Nasdaq-100 leading the way to the upside with a 3.36% gain, allowing NDX to reverse back up to a column of Xs.
- Upside was led primarily by the mega caps while the average stock lagged. The S&P 500 equal weight (SPXEWI) was actually down 0.2%, with the bullish percent for the S&P 500 dropping a percentage point as well.
- The bears are back in town. Among respondents to the AAII sentiment survey, just 31% think the market will move higher over the next six months. Prior to the last two weeks, that’s the lowest sentiment reading since Mid-March. Thankfully, worse sentiment is typically positive for the market.
- While momentum has struggled recently, it had an extremely strong outing on Thursday. The iShares MSCI USA Momentum Factor ETF (MTUM) rose 5.53% for its best day since April 9th 2025. The fund still trades on three consecutive sell signals, but reversed back into Xs, leaving support at $285.
- Several Mag 7 names also reported earnings over the last two days.
- Microsoft (MSFT) was the major winner of the day after reporting strong earnings, gaining 15.51% and pushing it up to a 3 for 5’er after regaining near-term market relative strength
- Meta Platforms (META) plummeted 7.95%, dropping to a 0 for 5’er after flipping its trend negative.
- Overnight, both Amazon (AMZN) and Apple (AAPL) reported earnings, with Amazon lifting while Apple pulled back. Amazon will likely remain a low attribute name, but APPL is a potential buy on pullback candidate as a strong for 5’er.
