Tech Profit-Taking Incites Pressure, Analyzing PLTR & PFE Earnings Beats

Market Overview - The market is experiencing mixed results, with Amazon reaching an all-time high while futures indicate pressure [1] - There has been a recent weakness in market breadth, leading to some profit-taking [2] - Financial stocks like Wells Fargo and Bank of America saw a slight recovery after earlier sell-offs [3] Earnings Reports Palantir - Palantir reported revenue of $1.18 billion, exceeding the expected $1.09 billion, with a year-over-year growth of 63% [6] - Adjusted earnings per share were 21 cents, surpassing the anticipated 17 cents, and the outlook for free cash flow has improved [7] - Despite the strong report, the stock is considered expensive, and there is potential for a sell-off following the news [8][10] Pfizer - Pfizer's revenue came in at $16.65 billion, slightly above the expected $16.58 billion, with adjusted earnings per share of 87 cents, exceeding the forecast of 63 cents [14] - The company reaffirmed its revenue guidance for 2025 and raised its EPS guidance, while also taking a one-time charge of $1.35 billion for R&D expenses [15][17] - Pfizer is facing challenges due to declining COVID-19 sales and is seeking new growth opportunities, particularly in the GLP-1 space [18][19] Market Drivers - Upcoming earnings reports, particularly from AMD, are expected to influence market direction [20] - The S&P 500 is projected to have an implied move of around 1.2% to 1.25%, indicating anticipated volatility [22] - The high-yield debt market is seen as a key signal for potential equity gains [22]