Micron Earnings Will Determine Course Of AI Rally, Apple's Europe Problem, Bitcoin ETF Inflows Cool
Portfolio Pulse from The Arora Report
Micron's upcoming earnings report is expected to significantly influence the AI rally and the broader stock market. The report will be released on Wednesday after the close. Other notable mentions include Apple's regulatory issues in Europe, mixed money flows in major tech stocks, and cooling inflows in Bitcoin ETFs.
June 24, 2024 | 3:59 pm
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POSITIVE IMPACT
Micron's earnings report on Wednesday is expected to significantly influence the AI rally and the broader stock market. Consensus estimates are $0.48 EPS and $6.6B in revenue, with whisper numbers at $0.55 EPS and $7B in revenue.
Micron's earnings will be a key determinant for the AI rally. Positive results could lead to a significant stock price increase, while negative results could have the opposite effect.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
NEUTRAL IMPACT
The Technology Select Sector SPDR Fund increased its weighting in NVDA from 5% to over 20%, while reducing AAPL's weighting from 21% to 5%.
Changes in XLK's holdings could impact the performance of NVDA and AAPL, but the overall effect on XLK is neutral.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 60
NEGATIVE IMPACT
Apple faces preliminary findings from the European Commission that its App Store is in breach of the Digital Markets Act. Historically, such violations have resulted in minor penalties, but the DMA has more stringent measures.
Regulatory issues in Europe could pose a risk to Apple's stock, although historically such issues have resulted in minor penalties.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Money flows in Bitcoin ETFs have cooled, leading to a drop in Bitcoin's price, which is now trading below $62,000.
Reduced inflows into Bitcoin ETFs suggest a bearish short-term outlook for Bitcoin's price.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Nvidia's stock has been volatile, tracing a negative technical pattern last week. Despite massive buying by the XLK ETF, NVDA's stock has drifted down.
Nvidia's negative technical pattern and recent stock performance suggest a bearish short-term outlook, despite support from ETFs.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 80