To The Moon

On Tuesday, we saw major U.S. equities indices moved lower, this is the final market session before the Election Day on 05 November 2024.

This week trading will also see Federal Reserve's interest-rate announcement on Thursday and the latest stream of corporate earnings reports on top of the political developments.

The S&P 500 closed 0.28% lower as voters prepared to head to the polls. The NASDAQ also fell 0.33%, while the DJIA lost 0.61%. This has cancelled off gains from last Friday when earnings news boosted technology stocks and the October jobs report reinforced expectations that the Fed will continue cutting interest rates.

NASDAQ had its seven-week win streak taken out and S&P 500 and DJIA posted weekly losses for the second consecutive week. Large-cap technology stocks were mostly lower on Monday, with the notable exception of $NVIDIA Corp(NVDA)$ , which gained 0.5% following the late-Friday news that the AI investor favorite would replace beleaguered chipmaker Intel (INTC) in the Dow later this week.

Nvidia surpassed Apple (AAPL) as the world's most valuable company in terms of market capitalization on Monday morning, though the iPhone maker finished the session back in the top spot. Apple shares closed 0.40% lower following news over the weekend that Warren Buffett's Berkshire Hathaway (BRK.A; BRK.B) continued to sell its stake in the tech giant during the third quarter.

Aircraft manufacturer Boeing (BA) was up slightly, after surging more than 3% on Friday, ahead of a vote Monday on the company's latest deal with the union representing machinists who have been on strike for seven weeks. Boeing was up 0.30% after the deal was negotiated successfully.

While the corporate earnings schedule picks up in the coming days, investors are particularly focused on Tuesday's presidential vote and the Fed's interest rate decision on Thursday. The Fed, which cut its key lending rate for the first time in four years in September, is widely expected to trim the rate by a quarter percentage point this week.

Palantir Strong Results Were Driven by 'Unrelenting AI Demand'

Palantir Technologies (PLTR) delivered third-quarter earnings that came in well ahead of analysts’ expectations, sending shares higher in extended trading Monday.

Palantir Technologies (PLTR) 's U.S. commercial revenue grew 54% to $179 million. Palantir CEO Alexander Karp said the strong results were "driven by unrelenting AI demand."

Palantir Technologies (PLTR) said it anticipates fourth-quarter revenue of $767 million to $771 million, and raised its full-year forecast to revenue of between $2.805 billion and $2.809 billion, up from $2.742 billion to $2.75 billion previously.2

Shares of Palantir jumped over 11% in extended trading following the release. They were up 141% for the year through Monday's close.

I am holding my Palantir position as I see this stock for a long term gain to go beyond $50 as AI adoption continues to increase.

From the technical, we should be seeing upside movement forming moving forward as we can see that PLTR is trading above short-term and long-term MA, though we saw a decline due to the market correction, so it is important to look at stocks which has a strong business fundamental demand, Palantir AI software would be something that would grow as organization adopt AI.

S&P 500 Energy Sector Winner With More Than 1.8% Gain

Crude oil futures were up more than 2% following news that the OPEC+ group of oil producing nations agreed to extend output cuts.

This has helped the S&P 500 Energy sector to gain more than 1.5%.

Note Yield Lower

The yield on 10-year Treasurys, which reflects expectations about the economy and where interest rates are headed, fell to 4.298% from 4.36% on Friday. The yield has been rising in recent weeks as market participants have recalibrated their expectations for how aggressive the Fed will be in cutting rates.

Summary

Today’s market would be in cautious mood as traders and investors might wait for more election results revealed and see which sector would likely to benefit. Not forgetting that Fed interest rate decision on Thursday would be another factor as well.

So we could see some movement in technology and financial stocks, this is what I expect as investors look to see what these stocks would respond to volatility. One more sectors would be the growth stocks.

Appreciate if you could share your thoughts in the comment section whether you think market would exhibit a mixed reaction as investors await election results and Fed interest rates decision..

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.