📈 Daily Market Recap
S&P 500 (SPY)
7,106.85
-0.26% (-$18.30)
Nasdaq Composite (QQQ)
24,463.19
-0.45% (-$110.51)
Dow Jones (DIA)
39,724.08
-0.31% (-$123.42)
Russell 2000 (IWM)
239.84
+0.74% (+$1.76)
Market Summary: Stocks pulled back from record highs as software stocks plunged following earnings from ServiceNow and IBM. Major indexes declined with tech leading the selloff. Small caps (Russell 2000) outperformed, gaining nearly 1% as investors rotated away from large-cap tech. Oil prices surged on renewed Iran war concerns, adding pressure to equity markets.
Key Highlights:
- Software stocks tumble - ServiceNow down 15%, IBM under pressure
- Russell 2000 shows strength relative to major indices
- Oil prices rise as Iran peace talks stall, Strait of Hormuz traffic disrupted
- 166 companies reported earnings today, one of the busiest days of the season
- Technology sector underperforms while small caps show resilience
💼 Earnings Analysis
Major Earnings Reported Today:
- NOW - ServiceNow shares tumbled nearly 15% after flagging a hit to first-quarter subscription revenue growth, citing delays in Middle East deals due to the ongoing Iran conflict. Despite solid earnings beat, the weak outlook rattled investors.
- IBM - IBM beat on earnings and revenue but maintained guidance, failing to excite investors amid broader software sector selloff. Concerns about AI disruption weighing on legacy enterprise software names.
After-Market Close Earnings:
- INTC - Intel reported better-than-expected Q1 2026 earnings, beating on both top and bottom lines. Data center sales drove the beat, and the company provided better-than-anticipated Q2 guidance on strong data center momentum. Intel stock has surged 74% year-to-date as investors bet on its AI chip turnaround.
Earnings Season Overview:
- 76% of S&P 500 companies have beaten earnings estimates (down from 78% yesterday)
- Technology sector showing signs of rotation - AI leaders strong, legacy software under pressure
- Guidance mixed as companies grapple with geopolitical and economic uncertainties
- Small cap earnings surprising to the upside, supporting IWM outperformance
📋 Tomorrow's Earnings Calendar
- Before Market Open: AAPL (Apple), MSFT (Microsoft)
- After Market Close: GOOGL (Alphabet), AMZN (Amazon)
🌙 After-Hours Action
After-Hours Movers:
- INTC +4.25% - Strong earnings beat, upbeat Q2 guidance, data center momentum
- NOW -14.85% - Disappointing subscription growth outlook, Middle East delays
- IBM -2.35% - Beat earnings but maintained guidance, AI disruption fears
- AAPL +0.65% - Ahead of earnings, positive sentiment on iPhone demand
- MSFT +0.55% - Azure growth expectations, AI integration progress
After-Hours Volume Leaders:
- INTC - Highest AH volume, strong institutional buying on data center growth
- NOW - Elevated selling pressure, institutional rotation out of software
- AAPL - Moderate volume, ahead of major earnings report
🎯 Next Day Setup (Friday, April 24, 2026)
Key Levels to Watch:
- SPY: Resistance 7,125 | Support 7,085
- QQQ: Resistance 24,550 | Support 24,400
- IWM: Resistance 241 | Support 238
📅 Key Catalysts
- Before Open: AAPL, MSFT earnings (High Impact)
- 8:30 AM ET: Durable Goods Orders (Medium Impact)
- 10:00 AM ET: New Home Sales (Medium Impact)
- After Close: GOOGL, AMZN earnings (High Impact)
🔍 Watchlist
- AAPL: Earnings critical - watch iPhone 17 sales, services growth, China performance
- MSFT: Azure cloud growth, AI Copilot monetization, enterprise software demand
- GOOGL: Cloud acceleration, search market share, AI product roadmap
- AMZN: AWS growth, retail margin, Prime subscriber metrics, AI investments
- INTC: Post-earnings follow-through, institutional positioning on data center narrative
- NOW: Continued pressure or rebound potential after -15% drop
- Energy Sector: XOM, CVX on rising oil prices amid Iran tensions
📊 Sector Setup
- Technology: Mixed/Cautionous - AI leaders (NVDA, AMD, INTC) strong, legacy software (NOW, IBM) under pressure
- Small Caps: Bullish - IWM outperforming, earnings beats, rotation from large-cap tech
- Energy: Bullish - Oil prices rising on geopolitical tensions
- Semiconductors: Bullish - Data center demand strong, AI tailwinds
⚠️ Risk Factors
Key Risks to Monitor:
- Earnings Volatility: AAPL, MSFT, GOOGL, AMZN reporting over next two days - could trigger major sector moves
- Geopolitical: Iran peace talks stall, Strait of Hormuz traffic disrupted - oil prices surge, risk premium rising
- Software Sector Rotation: ServiceNow selloff may extend to other enterprise software names as AI disruption concerns grow
- Technical: Major indices pulling back from record highs - potential for deeper correction if earnings disappoint
- Oil Prices: Rising prices could impact inflation expectations and delay Fed rate cuts
- Small Cap Outperformance: Rotation into IWM may signal broader market fatigue with large-cap tech
Risk Management Recommendations:
- Maintain defensive positioning ahead of AAPL and MSFT earnings
- Consider hedging large-cap tech exposure with IWM or VIX calls
- Reduce position sizes in software stocks facing AI disruption risk
- Keep cash reserves available for potential pullback buying opportunities
- Monitor oil prices - if $90/barrel breached, expect energy sector gains and inflation concerns
- Use stop-losses on new entries, especially around earnings announcements