February 5, 2025

Markets:

Stock futures fell Wednesday after mixed quarterly figures from Alphabet and chipmaker AMD led the tech sector lower. A decline in Apple also put pressure on futures.

Alphabet shares tumbled 7% after the Google-parent posted a cloud revenue miss as it ramps up spending on artificial intelligence, spooking investors who worried the megacap tech company will take longer to capitalize on its AI ambitions. Overall revenue for the period also came up short.

The Technology Select Sector SPDR Fund shed 0.6% in the premarket as a result. Adding to techs troubles was Apple, which dropped 2.7% after Bloomberg News reported that regulators in China were considering launching a formal investigation into the company’s App Store fees and policies.

This comes as trade tensions between China and the U.S. increase. Over the weekend, the U.S. unveiled a 10% levy on Chinese imports. China retaliated with tariffs of up to 15% on U.S. goods.

Portfolio:

As a reminder we have big earnings reports from ARM and QCOM tonight and the heavyweight AMZN to come tomorrow. Sector and market drivers to still come! Key takeaways from yesterday's earning reports from GOOGL – 75 billion committed to CAPEX. Monster investment and companies like AVGO and NVDA really took off after this news. Although GOOGL is down 7% in pre, we actually think it provided a strong outlook. 

Right now, nothing has changed technically. QQQ needs to hold 517, currently sitting at 521. SPY we want to see hold 597 level but would love to see a break and hold back above 600. Currently sitting at 599.85. Not overreacting on a potential down opening. If anything, pick one of your favorites and add to it.

We enter this session holding TSLL, SOXL, ASAN, and S.  Please be ready for updates and a possible new trade alert.  Flow today and price action should be super interesting off of these reports but also the CAPEX investment news and other headlines we are seeing.