Yesterday, market participants reviewed quarterly results from Lowe’s Companies Inc., which reported revenue of $23.96 billion, matching forecasts and exceeding last year’s $23.59 billion. Earnings per share stood at $4.33, up from $4.24 and $4.10 in prior periods. Meanwhile, Target Corp. posted revenue of $25.21 billion, above analysts’ expectations of $24.9 billion, though below last year’s $25.45 billion. EPS came in at $2.05, compared with $2.04 and $2.57 a year earlier.
Additional pressure on the Nasdaq index comes from the bond market, where yields remain rangebound. The yield on 10-year Treasuries fell to 4.298% from 4.341% last week, while the 30-year yield eased to 4.900% from 4.944%.
Top gainers in the index included Analog Devices Inc. (+6.26%), Regeneron Pharmaceuticals Inc. (+3.36%), Microchip Technology Inc. (+3.17%), and Texas Instruments Inc. (+2.47%). On the downside, Intel Corp. (–6.99%), Micron Technology Inc. (–3.97%), Old Dominion Freight Inc. (–2.95%), and Arm Holdings ADR (–2.13%) stood out.
Support and resistance
On the daily chart, the index continues to correct lower, approaching the support line of an ascending channel with boundaries between 24500.0–23200.0.
- Resistance levels: 23670.0, 24670.0
- Support levels: 22700.0, 21540.0
Technical signals have softened: fast EMAs on the Alligator indicator are converging with the signal line, while the AO histogram is rolling over, printing corrective bars in positive territory.
Trading scenarios
Base scenario: Long positions can be considered after a breakout above 23670.0, targeting 24670.0, with a stop-loss at 23100.0. Time horizon: one week or more.
Alternative scenario: If the index breaks below 22700.0, short positions toward 21540.0 become relevant, with a stop-loss at 23400.0.