Stock Market Pauses After Bullish Week; Onsemi, Ceridian HCM, FOUR In Focus | Stock Market Today

TL;DR

Major indexes saw losses in today's session, while key stocks like Ceridian HCM and Shift4 Payments showed potential for gains. Sector rotation and the market's response to inflation and retail sales data will be important factors to watch.

Transcript

foreign good afternoon everyone and welcome to the stock market today it's Allie Corman kintreef here with a breakdown of the action in today's session where we saw losses for the major indexes and uh not so great closed Ken but as always you have three stocks for us to take a look at yes indeed we've got a couple of bottoming bases to take a look ... Read More

Key Insights

• 😚 Major indexes closed with losses, following strong gains last week.
• 👀 Ceridian HCM (CDAY) and Shift4 Payments (FOUR) showed potential for gains and are worth watching.
• 🧑‍🏭 Retail earnings, monthly retail sales report, and inflation data will be crucial factors influencing market movement.
• 🥳 The market remains in a confirmed uptrend, although a late-day sell-off took place.
• 🤩 The 10-year treasury yield is testing a key support level, while the dollar dropped below moving averages.
• 🙃 ON Semiconductor (ON) may consolidate before attempting an upside breakout.
• 👀 Bottoming bases to watch include Ceridian HCM (CDAY) and Shift4 Payments (FOUR).

Questions & Answers

Q: What were the major indexes' performance in today's session?

The NASDAQ closed down 1.1 percent, the S&P 500 down at nine tenths of a percent, and the Dow down six tenths of our percentage. The Russell 2000 was on pace for a decline of seven tenths of a percent.

Q: Why did the market see losses despite strong gains last week?

After two days of significant gains, it is not surprising to see a slower pace and some profit-taking. The late-day sell-off might have been influenced by weaker volume, but overall, the market remains in a confirmed uptrend.

Q: What are the upcoming economic data releases that could impact the market?

It is a pivotal week with a focus on retail earnings and the monthly retail sales report. Additionally, the latest producer price index, a reading on wholesale inflation, will be released tomorrow, which could be a market mover.

Q: What is the significance of the 10-year treasury yield and the dollar for the market?

The market dislikes rising interest rates and a strong US dollar. The 10-year yield is currently testing a key support level, while the dollar recently dropped below its 50-day and 10-week moving averages. The market wants to see the 10-year yield below four percent and the dollar to stay below the moving averages.

Q: What is the outlook for ON Semiconductor (ON) stock?

ON Semiconductor has shown strength as a major supplier of chips to the electric vehicle industry. While it reversed lower today, it tried to break out above the 76 area. It may consolidate and form a high handle before attempting an upside breakout.

Q: What are the bottoming bases to watch in the stock market?

Ceridian HCM (CDAY), an enterprise software company focused on human capital management, showed three up days in a row and broke out above its 200-day moving average. Shift4 Payments (FOUR), another enterprise software stock, cleared its 200-day moving average, with strong volume coming in.

Q: Why is sector rotation important for investors?

Sector rotation indicates a shift in leadership, and new leadership is essential for sustained market growth. While the rotation is occurring, it is crucial for investors to be patient and let the market provide the best setup opportunities.

Summary & Key Takeaways

• Major indexes, including NASDAQ, S&P 500, Dow, and Russell 2000, closed with losses, following strong gains in the previous week.

• Stocks to watch include Ceridian HCM (CDAY) and Shift4 Payments (FOUR), both showing positive performance and potential for further gains.

• The market is in a confirmed uptrend, although there was a late-day sell-off, and upcoming retail earnings and economic data, such as inflation and retail sales reports, will influence market movement.