rewrite this title A quiet week on Wall Street – eToro

The Daily Breakdown looks at what’s expected to be a quiet week on Wall Street, due to the holiday-shortened trading sessions.

Monday’s TLDR

No major reports this week
Altered trading schedule due to the holidays
SNOW stock looks to hold support

Weekly Outlook

You’ve done it — you made it through 2024! Well, almost. It’s the final week of the year and therefore, our final weekly outlook for 2024. 

Because of this week’s holiday trading schedule, the real gauntlet was last week with the Fed meeting, GDP, PCE, and the retail sales report, plus a few notable earnings. 

This week has none of that. 

There are a few economic reports (like housing data on Tuesday), but this week lacks any of the major macro reports we typically focus on. No noteworthy earnings reports are scheduled for the next two weeks, either. 

As for the holiday schedule, today’s trading hours are the same as usual. On Tuesday, markets close early at 1 p.m. ET and they are closed on Wednesday. Thursday and Friday resume normal trading hours. 

Markets are again closed next Wednesday (Jan. 1) for the New Year.

As you might expect, trading volumes tend to be light this time of year. 

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The setup — Snowflake

Shares of Snowflake have spent most of the year in the doldrums, and despite the big rally lately, the stock is still down over 16% so far for the year. 

However, it got a big dose of bullish momentum after reporting strong earnings last month.

For now, SNOW stock is finding support around $160. Bulls will want to see that continue, but they’ll also be looking for the stock to clear recent downtrend resistance. If it can do so, it could usher in more bullish momentum, potentially putting a rally back to the recent highs in play. 

On the flip side, a close below $160 could give the sellers a leg up, ushering in more bearish momentum.

Options

Investors who believe shares will break out — or those who are waiting for the potential breakout to happen first — can participate with calls or call spreads. If speculating on the breakout rather than waiting for it to happen first, investors might consider using adequate time until expiration. 

For investors who would rather speculate on resistance holding, they could use puts or put spreads. 

To learn more about options, consider visiting the eToro Academy.

What Wall Street is watching

BTC — After hitting an all-time high on Tuesday, Bitcoin stumbled lower, ultimately falling back below the key $100,000 mark. For now, it continues to find support in the low- to mid-$90,000 range. So long as that remains the case, bulls might find comfort in the recent consolidation. Check out the chart. 

NKE — Nike reported its quarterly results on Thursday evening, with earnings of 78 cents a share easily beating expectations for 63 cents a share, while revenue of $12.35 billion beat estimates of $12.11 billion. Shares initially rallied on the news, but those after-hours gains evaporated as new CEO Elliott Hill explained that the turnaround would take time. 

HMC — Shares of Honda are in focus on Monday, rising about 15% in pre-market trading as the automaker confirms merger talks with Nissan. The two Japanese auto manufacturers signed a basic agreement for merger talks, while Honda said it will buy back up to $7 billion of its own stock.

Disclaimer:

Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.