Major US stock indexes rose despite trade fears, with upcoming earnings reports expected to shed light on tariffs' impact on corporate profits, particularly through changes in gross profit margins. The market remains near record highs, and economic indicators like the VIX are at low levels, suggesting investor confidence.
The "Magnificent 7" stocks, including Apple, Microsoft, Amazon, Alphabet, Meta, Tesla, and Nvidia, are not performing as expected in early 2024, with only four of the seven showing positive returns. The Dow Jones is slightly up as market indexes hover near record highs, with the S&P 500 close to reaching a new record high.
As the "Magnificent Seven" tech stocks continue to dominate the market, investors may want to broaden their exposure to other quality tech-related companies. Josh West, co-manager of the Buffalo Mid Cap Fund, highlighted seven information services companies that offer wide-moat businesses and stable returns on invested capital. These companies include MSCI Inc., Verisk Analytics Inc., Gartner Inc., CoStar Group Inc., Equifax Inc., Moody's Corp., and IQVIA Holdings Inc. These stocks have shown strong performance and trade at a premium due to their growth potential and high returns on capital.
Nvidia, Uber, Axon Enterprise, and other IBD Leaderboard stocks are showing resilience in the pressure-cooker market as market indexes face uncertainty. Nvidia is testing its 50-day moving average, while Uber and Axon are bouncing above that benchmark. Other stocks like Celsius, Tidewater, and Meta Platforms are also displaying mixed technical action. Investors should monitor support and resistance levels in major indexes, with the Nasdaq and S&P 500 moving back above their 50-day lines. Uber and Nvidia are showing strength, while the market's overall trend remains uncertain.