Stocks are coming off a winning session, with the S&P 500 achieving its fourth consecutive record close and the Nasdaq Composite also ending at a record high. Wholesale inflation unexpectedly decreased by 0.2% last month, contrary to economists' expectations of a 0.1% increase. This follows a flat consumer price index reading for May. Optimism about cooling inflation has boosted equities, with the S&P 500 up 1.6% and the Nasdaq up 3.1% for the week. The Dow, however, is down by 0.4%, making it the only major index to end the week lower.
ADOBE
Adobe shares surged 17% in extended trading on Thursday after reporting earnings and revenue that exceeded estimates and raising its full-year guidance. The Digital Media business, which includes Creative Cloud subscriptions, saw net new annualised recurring revenue of $487 million, surpassing the $437.4 million consensus. Adobe also announced a new service for fine-tuning its Firefly generative AI models to match clients' brand guidelines. David Wadhwani, president of Adobe's Digital Media business, expressed excitement about innovation and the early monetisation of AI features across Document Cloud and Creative Cloud.
ADBE (Daily). Slowly declining over the last 3 months, Adobe seems to put the brake on it and find its momentum again. If it succeeds in breaking through the supply level at 465.00, our target will be 522.00, the next potential supply level.
TESLA
Tesla shares increased by 2.9% on Thursday, closing at $182.47, following Elon Musk's announcement on X about an upcoming approval. Despite this, the stock remains down 27% for the year due to declining sales from an ageing EV lineup and increased competition in China. At the annual meeting, shareholders voted on 12 proxy proposals, including moving Tesla's incorporation from Delaware to Texas, which was approved.
TSLA (Daily). Bouncing from the double-bottom pattern at 168.00, this stock is expected to reach the gap made at the beginning of the year 2024, which is the resistance level at 206.00.
MICROSOFT
Microsoft is named a top AI pick in a Thursday note, maintaining a buy rating with a price target of $550, which implies about 25% upside. On Friday, Oppenheimer boosted Microsoft’s price target from $450 to $500 due to the increasing adoption of its AI-related tools.
MSFT (Daily). Breaking the all-time-high level, Microsoft is projected to hit 500 - 550 USD per share by the end of this year. Wait for a minor correction while closing the gap in 431.50, as an ideal buying level.
Fullerton Markets Research Team
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