Market Rally Stalls Amid Trump Iran's Threats | Closing Bell
Speakers
Summary
- U.S. equities closed with modest gains: Dow +0.4%, S&P 500 +0.5%, NASDAQ +0.5%, Russell 2000 +0.4%.
- Sector performance mixed: technology and consumer staples led advancers; health care and energy were the only decliners.
- Seagate Technology and Western Digital rose on Morgan Stanley's price target increases and AI-driven demand optimism, with Seagate named a top pick.
- Applovin surged after Wells Fargo raised its price target, citing improving checks and a positive setup for Q1 earnings.
- Tesla declined as JPMorgan cut earnings estimates following disappointing Q1 deliveries, advising investors to proceed with caution.
- Invesco fell on news of potential competition for Nasdaq 100 ETF tracking, with the company issuing a pointed response.
- Oracle dipped slightly amid a CFO transition and concerns over negative free cash flow until 2030 due to data center investments.
- Market volumes were low, attributed to a holiday-like environment, with bond markets especially quiet.
- Geopolitical risks from Iran threats were noted, but oil prices remained elevated without a clear immediate market impact.
- Attention shifts to upcoming earnings season and economic data for direction on inflation and economic activity.
Trade Ideas
Morgan Stanley raised price targets on Seagate to $582 from $468 and on Western Digital to $380 from $369, named Seagate a top pick, citing AI tailwinds and sustained hyperscaler demand. AI-related demand is driving growth in storage, leading to firmer pricing, elongating customer visibility, and improving HDD market dynamics into 2027. LONG due to strong analyst conviction in upside potential and explicit recommendation to add aggressively during market volatility. Failure of AI demand to materialize or a broader downturn in technology spending.
Wells Fargo raised Applovin's price target to $560 from $543, maintaining an overweight rating, citing improving checks and negative buy-side sentiment. Positive setup into Q1 earnings with industry growth above normal seasonality, and limited competitive pressure from Meta's ad platform progress. LONG as the firm sees significant share price appreciation from current levels based on fundamental improvements. Earnings disappointment in the upcoming quarter or a slowdown in the ad market.
JPMorgan cut Tesla's EPS estimates after weak Q1 delivery numbers, advising investors to proceed with caution due to weaker performance. Disappointing deliveries signal ongoing challenges, leading to reduced earnings forecasts for 2024-2027. AVOID due to downgraded financial outlook and heightened risk without clear near-term catalysts for recovery. Unexpected improvement in deliveries or cost efficiencies that boost profitability.
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This Bloomberg Markets video, published April 06, 2026, features Romaine Bostick, Tim Stenovec discussing STX, WDC, APP, TSLA. 3 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Romaine Bostick, Tim Stenovec · Tickers: STX, WDC, APP, TSLA