US stocks surged higher overnight led by the reinvigorated Tech Sector following strong earnings e.g. Amazon.com, the world’s largest retailer, closed up +4.6% following a profit result that showed the great combination of successful cost-cutting and strong sales with 1st quarter revenue up +9.4% to $US127.4bn. However, among the big names Meta Platforms (META US), the old Facebook, took centre stage rallying +14% as a strong rebound in digital sales caught the market wrongfooted. This positive news on advertising fed into a 7% rally in The Trade Desk (TTD US), a position we own in our International Equities Portfolio that is set to report on the 10th May.
- We have been looking for the NASDAQ to test the 13,700 area, this view now feels back on track i.e. now only 4% higher.
MM is neutral toward US stocks medium term
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As mentioned previously Amazon rallied strongly overnight following a robust earnings report which epitomises how we see markets at the moment i.e. fund managers have become too negative and are being forced to buy decent results with their elevated cash levels.
- We can see Amazon bouncing another 10-15% which ties in with the NASDAQ reaching our targeted area.
MM is short-term bullish toward AMZN
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