Jay Woods is watching two beaten-down software stocks into earnings this week

§ 01 Executive Snapshot

• What: Jay Woods is monitoring Salesforce and Snowflake as they prepare to report earnings this week.
• Who: Jay Woods, chief market strategist at Freedom Capital Markets; Salesforce; Snowflake.
• Why it matters: Insights into the performance of these software stocks could influence market sentiment and investment strategies.

§ 02 Key Developments

• Salesforce has dropped 31% year-to-date due to concerns over AI disruption.
• Woods identified a key support level for Salesforce at $167, suggesting a bullish reversal if it can break above $180.
• Snowflake is down 18% year-to-date but shows signs of breaking a downtrend, with a potential resistance level at $202.

§ 03 Strategic Context

• The performance of software stocks like Salesforce and Snowflake is critical as they are major players in the tech sector, reflecting broader market trends.
• The upcoming earnings reports are essential for assessing investor confidence in these companies amidst AI-related market shifts.

§ 04 Strategic Implications

• A bullish breakout above key resistance levels for Salesforce and Snowflake could signal renewed investor interest and market momentum.
• Conversely, failure to hold support levels may lead to further declines and cautious sentiment in the software sector.

§ 05 Risks & Constraints

• Potential risks include broader market downturns and the impact of AI disruption on company performance.
• Both stocks face significant competition and market volatility that could affect their earnings outcomes.

§ 06 Watchlist / Forward Signals

• Earnings reports for both Salesforce and Snowflake are scheduled for Wednesday after the closing bell.
• Key technical levels ($180 for Salesforce and $202 for Snowflake) will be critical indicators of future performance post-earnings.