Talk about tough sledding. The market was buffeted yesterday after a couple of half-hearted buy programs didn’t trigger anyone off the sidelines. Instead, the sidelines got more crowded. Technology (XLK) and Consumer Discretionary (XLY) took it on the chin, but Communication Services (XLC) held up.  Consumer Staples (XLP) was the only advancing sector, led by Conagra (CAG) and Walmart (WMT).

Heat Map & Market Breadth

Breadth was decidedly bearish – watch for new highs and lows to flip as a potential sell signal.

The Volatility Index (VIX) spiked along with the put-call ratio.

The large red squares are burning brighter.

Big Tech Earnings Hits

Everyone loves cybersecurity, which has powered big moves in publicly traded names and fueled massive investment funding activity, as well as mergers & acquisitions (M&A) activity.

But after the close, the most famous name in the niche, Palo Alto Networks (PANW), posted financial results that were okay, but guidance was shockingly disappointing.

Guidance

The new full-year 2024 guidance is $7.95 billion to $8.00 billion.

The prior time the company posted results FY 2024, guidance was $8.15 billion to $8.20 billion.

Economic Calendar

Earnings Calendar

There are lots of intriguing names, but all eyes are on Nvidia (NVDA), which reports after the close.

The stock was hammered yesterday. 

Today’s Session

With everyone chasing performance, including hedge funds, the stage is set for a wild 24-hours.  Right now, options activity suggest NVDA will make an 11% move in either direction.

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