Investment trends might shift as key earnings reports surface

The Dow Jones, S&P 500, and NASDAQ have been bullish over the past seven days, raking in gains as high as 3.45%.

Despite the higher-than-expected inflation numbers and slowed progress towards rate cuts, Tradingbiz analyst Rahul Nambiampurath believes that improvement in areas like consumer spending, employment rates, and industrial production can help sustain the rally.

Also, the earning reports of top firms are expected to show up anytime now, which Rahul believes could determine the investment trends for 2024.

For instance, Amazon’s earnings report is due in a day, with EPS expected to be 0.83 per dollar. If AMZN outperforms, the near-term focus will shift to cloud computing and e-commerce setups.

What’s encouraging is that for the past three quarters, AMZN has beaten EPS expectations. Furthermore, the stock is up almost 20% year-to-date, showing the investor bullishness.

Other expectations and the market impact

Besides Amazon, AMD is also expected to release its quarterly Earnings report on 30 April. All eyes will be on the EPS expectation of 0.61 per dollar. Notably, the EPS target was barely met last quarter despite AMD being up 13.58% year-to-date.

Here are the sectors and associated stocks that Rahul believes might see positive impact if AMD meets or exceeds expectations:

• Tech hardware space: Lenovo, HP, Dell, and more
• Semiconductor space: NVIDIA and Intel
• Gaming Graphics: Electronic Arts and Activision Blizzard
• Cloud Computing: Google (Alphabet), Microsoft, and more.

How do things look for AMZN and AMD holders?

Investment trends are fine, but Rahul has good news for AMZN and AMD holders. AMZN is trading inside an ascending wedge/channel pattern. Despite the correction seen by the global markets during the early part of April, AMZN continues to trade above the 50-day EMA line. The trend looks bullish, and even the RSI seems to be confirming the same with a hidden bullish divergence.

AMZN daily chart: TradingView

If the current price manages to breach past $183, Rahul expects AMZN to reach a $200+ level in weeks to come. Rahul’s analysis is in sync with Brain Pitz’s view of the stock. Brian Pitz, an analyst at BMO Capital, has a “Buy” rating for AMZN and a target price of $215.

Even though AMD has been in a downtrend since March 2024, Harsh Kumar, an analyst at Piper Sandler, has a “Buy” rating on the stock, followed by a target price of $195. Therefore, Rahul believes that AMZN and AMD holders might be poised for short-to-mid-term gains in 2024.