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11-20 20:13

All Time High: Who Will Drive the Year-End Rally?

Following Nvidia's strong rebound yesterday, the Nasdaq surged higher. Check out the stocks that hit new highs this week!1. $MicroStrategy(MSTR)$ soared more than 11% to touch a new all-time high of $449 The company announced buying more bitcoin as bitcoin hit an all time high of near $94000 yesterday.MicroStrategy began accumulating Bitcoin since 2020. Last week, the company invested $4.6 billion to acquire nearly 80,000 more BTC, bringing its total holdings to 331,200 BTC. The performance of MSTR has been closely linked to Bitcoin.Since August 2020, MSTR stock has surged 3,000%, while BTC prices have gained “just” 660%.Despite a 580% increase in MSTR's stock price this year, many investors avoid it due to its poor fundamentals and higher volatil
All Time High: Who Will Drive the Year-End Rally?

New Highs: Small-cap and Tech Growth Stocks Poised for Huge Bull Run?

U.S. stocks continue to hit new highs, and the gains of small-cap stocks, especially those tech growth stocks that went public in 2020 and 2021, are hard to ignore. Check out this week's new high stocks!1. $Palantir Technologies Inc.(PLTR)$ hits an all-time-high of $62.08, with a YTD gain of $250.83%.Last week, Palantir surged 20% on a day after reporting strong third-quarter results, driven by a significant increase in AI-driven demand.EPS: 10 cents adjusted vs. 9 cents expected (+11.11%)Revenue: $726 million vs. $701 million expected (+3.57%)Palantir also raised its full-year revenue forecast, signaling robust future growth. Despite challenges in Europe and the Middle East, the company is targeting a 26% revenue increase for 2024.Additionally, t
New Highs: Small-cap and Tech Growth Stocks Poised for Huge Bull Run?

Growth or Meme Stocks: Would You Choose Them in Bull Market?

Yesterday, against the backdrop of a new market high following Trump's election victory, several companies surged more than 20% in a single day after their earnings reports! Let's take a look at the outstanding performance of these growth stocks.1. $Lyft, Inc.(LYFT)$ jumps 22.85% yesterday, a year-to-date gain of 18.01%. The company’s turnaround plan pushed it to an all-time high.Adjusted EPS: $0.29 vs. $0.20 forecast (a 45% beat)Revenue: $1.5 billion, beating estimate of $1.4 billion. (a 7.14% beat)The ridesharing company posted a record 217 million rides, up 16% from the year-ago period and ahead of the 213 million rides expected. 2. $Under Armour Class A(UAA)$ jumped 27.2% yesterday, achieving a ye
Growth or Meme Stocks: Would You Choose Them in Bull Market?

All-Time Highs: Will Stock Market's Next Trend Be Elections or AI?

After Trump’s election victory yesterday, US stocks $.SPX(.SPX)$ hit all-time highs across the board. Plus, there are some standout stars from this earnings season that shouldn’t be overlooked. Check out this week’s 'New Highs' column!1. $Morgan Stanley(MS)$ closed at $131.49 with a year-to-date increase of 41.01%. During his campaign, Trump expressed an intention to reduce corporate tax rates from 21% to 15%, which would be positive news for the banking industry. With lower tax rates, bank profits would naturally rise, boosting investor confidence. Trump has also advocated for reducing regulatory burdens, allowing the banking industry to operate in a more relaxed environment. 2.
All-Time Highs: Will Stock Market's Next Trend Be Elections or AI?

Earnings Season: Check These Stocks Who Beat and Hit New Highs!

This week we had a busy earnings report week! Which stocks that beat expectations and rose have been missed? These stocks reached all-time highs or 52-week highs after their earnings reports.1. $Royal Caribbean Cruises(RCL)$ reached a record high of $214 due to strong third-quarter results and a positive outlook.EPS: $5.20, beating the analyst consensus of $5.04.Revenue: $4.89 billion, in line with estimates.EPS Guidance: Raised to $11.57-$11.62, in line with the $11.58 consensus.The cruise operator reported strong booking trends and load factors of 111% in Q3, reflecting high demand. Net yields rose 7.9% year-over-year in constant currency, supported by higher pricing and strong onboard spending.2. $Booking H
Earnings Season: Check These Stocks Who Beat and Hit New Highs!

Why Coinbase Underperformed Bitcoin?

$Coinbase Global, Inc.(COIN)$ announced its Q3 earnings yesterday, and the results fell short of expectations. As a result, the stock dropped 4.84% after hours.Coinbase’s revenue and profit were both below what analysts had anticipated. This disappointing report contrasts sharply with the recent surge in Bitcoin's price.In 2023, Bitcoin's price has soared by 70%, while Coinbase’s stock has only risen by 22%. So, why is Coinbase lagging behind Bitcoin?Performance ComparisonIf we compare their trends, both Coinbase and Bitcoin show similar patterns. However, Bitcoin is nearing its all-time high, while Coinbase is still far from its peak.Looking back over the last two years, Coinbase plummeted 86% in 2022, compared to Bitcoin’s 64% drop. In 2023, Coi
Why Coinbase Underperformed Bitcoin?

Goldman Sachs: Big Returns Possible for US Stocks Before Year-End

If stock market performance aligns with historical trends, the last two months of the year could deliver significant returns. Since 1928, the $.SPX(.SPX)$ has averaged a 5.2% return from October 27 to December 31. In election years, this average rises to 6.3%. With the upcoming U.S. elections raising concerns on Wall Street, the $Cboe Volatility Index(VIX)$ index has surged.With only 44 trading days left in 2024, the market is entering a critical sprint. Goldman Sachs' Scott Rubner believes that the S&P 500 will soar beyond 6,000 points by year-end. He asserts that we are entering one of the best fourth-quarter trading periods in nearly a century.Optimism Amidst UncertaintyIn a report released on Octob
Goldman Sachs: Big Returns Possible for US Stocks Before Year-End

Caterpillar’s Resilience Amid Challenges: Profits Remain Strong

$Caterpillar(CAT)$ hit an all-time high in late September, fueled by three main catalysts.The company is set to report earnings on October 30.Solid Earnings Despite Declining SalesDespite lower sales, Caterpillar’s Q2 earnings received positive feedback. A slowdown in trading volume was expected after an April warning about declining sales, so the dip didn’t come as a surprise. Caterpillar, like the broader industry, faces a tough environment.Yet, overall, earnings indicate that Caterpillar is holding its ground. This is a well-managed company with solid profitability metrics and strong margins.Steady Revenue Signals StabilityNext week’s earnings report isn’t likely to disrupt this positive outlook. While the results may cause short-term fluctuatio
Caterpillar’s Resilience Amid Challenges: Profits Remain Strong

U.S. Treasuries Plunge Echoes 1995, Betting on Soft Landing

The last time U.S. Treasuries faced such a sharp sell-off following a Fed rate cut, Alan Greenspan was engineering a rare soft landing. Since the Fed’s first rate cut on September 18, 2020, the two-year Treasury yield has surged by 34 basis points. In 1995, under Greenspan, the Fed successfully cooled the economy without a recession, with yields also rising sharply. In earlier cycles before 1989, the two-year yield typically dropped 15 basis points a month after the first cut. Strong Economy Limits Fed's Aggressive CutsDeutsche Bank’s Steven Zeng remarked that rising yields indicate reduced recession risk, “The data is strong, and the Fed might slow the rate cut pace.” This yield rise shows the resilience of the U.S. economy, which is limiting Fed Chair Powell’s options for aggressive easi
U.S. Treasuries Plunge Echoes 1995, Betting on Soft Landing

Earnings Preview: Google at the Edge of a Breakthrough

$Alphabet(GOOG)$ $Alphabet(GOOGL)$ is set to report its Q3 earnings on October 29 after the market closes. Analysts expect revenues of around $86.2 billion and operating profit of $27.4 billion, marking year-over-year growth of 12% and 14%, respectively. These estimates seem reasonable given the broader positive advertising trends, positioning Google to meet expectations.Investor concerns about Google losing its search monopoly seem largely exaggerated. In Q3, Google actually gained market share in search, while ChatGPT’s traffic was a mere fraction—less than 5%—of Google Search’s. On valuation, Google’s stock looks cheap, trading at around 17 times its expected EV/EBIT for 2025.Google's stock has underp
Earnings Preview: Google at the Edge of a Breakthrough

Stocks to Consider Amid New US Market Highs & Election

$.SPX(.SPX)$ continues to reach new heights. With the U.S. presidential election coming up on November 5, historically, election years tend to be favorable for the stock market. Since 1960, the S&P 500 has generally risen in election years, with only the exceptions being 2000 and 2008 due to the tech bubble burst and the financial crisis, respectively.Despite polls showing a neck-and-neck race, investor uncertainty hasn't dampened enthusiasm. This year, the S&P 500 has seen modest gains, with 47 new highs recorded in 2024. Following the election, the market might receive another boost, just like in past instances.Understanding Market TrendsMelt-up signifies a situation where various factors converge, pushing the market to unsustainable hig
Stocks to Consider Amid New US Market Highs & Election

Trump Victory Set? Strategies for Asset Allocation Ahead

As October rolls on, the U.S. presidential race is heading in a new direction. The once-booming “Trump Trade” from July is resurfacing, with polls showing Trump taking a clear lead. Markets are already starting to price in the possibility of his victory.So, if Trump wins, what will happen to global capital markets, commodities, bonds, and especially Hong Kong and mainland Chinese stocks?Trump and Harris have sharply different views on critical issues such as inflation, energy, manufacturing, taxation, immigration, and foreign policy. Let's dive into the key sectors:1.Oil PricesOn energy, Trump wants to scrap Biden’s electric vehicle policy and ease regulations on oil and gas. He sees the climate change debate as exaggerated by environmentalists. Harris advocates for stricter regulations on
Trump Victory Set? Strategies for Asset Allocation Ahead

AI Narrative Overlays Election Trends! Will You Bet on New High Stocks?

1. $Oklo Inc.(OKLO)$ reached a new high yesterday, hitting $22.93 during trading, with a year-to-date increase of 111.27%. Boosted by AI power and major investments, nuclear power stocks were undoubtedly the hottest sector last week.2.After exceeding expectations in last week’s earnings report, $Netflix(NFLX)$ has continuously hit new highs, reaching $773 yesterday. For a giant like Netflix, this year’s 58.58% gain is quite remarkable.3. $Palo Alto Networks(PANW)$ has reached an all-time high of $384, driven by the growing demand for cybersecurity services.Analysts from Goldman Sachs and TD Cowen have maintained positive ratings, with price targets of up to $425.
AI Narrative Overlays Election Trends! Will You Bet on New High Stocks?

Will the Fed Pause Rate Cuts in November?

In his August speech at Jackson Hole, Federal Reserve Chairman Jerome Powell shifted focus from inflation to the labor market, hinting at last month’s 50-basis-point rate cut. However, Fed officials later clarified that they expect to move forward with smaller cuts of 25 basis points.Recently, the U.S. economy has surprised many with unexpected strength. From the impressive employment report earlier this month to last week's higher-than-expected Consumer Price Index (CPI), the momentum is undeniable. If the Fed is data-driven, they might conclude that the economy is stronger now than it was in early October.Last Thursday, retail sales data came in, showing a 0.4% month-over-month increase, surpassing the expected 0.3%. Even more impressive was a 0.5% rise in "core" retail sales, significan
Will the Fed Pause Rate Cuts in November?

China’s Stock Market: A Bullish Outlook?

China is rolling out a series of stimulus measures aimed at boosting confidence, paving the way for a sustained rally in the stock market. Trading volumes are hitting record highs, lifting the gloom that’s lingered for three years. The People’s Bank of China has introduced an unprecedented tool allowing banks to provide loans to companies for stock buybacks. This bull market began on September 24.Growing Demand for Long PositionsLars Naeckter, Head of Asia-Pacific Equity Derivatives Research at Bank of America, notes that demand for long positions has increased since the announcement of these measures. The cost ratio of call options to put options for Chinese stocks listed on Hong Kong exchanges and U.S. ETFs tracking them is nearing its highest level since 2008. Even though the
China’s Stock Market: A Bullish Outlook?

6400! UBS Ups Its Forecast for SPX in 2025

UBS now expects the U.S. stock market to hit new highs in 2025. Jonathan Golub, the bank's strategist, raised his target for the $.SPX(.SPX)$ from 6,000 to 6,400 points in a note to clients on Tuesday. This new forecast implies a 9.2% gain from Monday's close.Golub pointed to a favorable economic backdrop as the driving factor. "UBS economists forecast 3.7% growth in U.S. nominal GDP in 2025, roughly in line with long-term averages," he said. He added, "Rate cuts should reduce interest expenses and default risks, boosting earnings per share and valuations."Golub’s call came right after the S&P 500 hit an all-time high, with the index up nearly 23% year-to-date. Investors are banking on the Federal Reserve cutting rates in the coming months, fu
6400! UBS Ups Its Forecast for SPX in 2025

Wall Street: Betting on a Trump Win!

Billionaire investor Stan Druckenmiller believes that the market is pricing in the possibility of Donald Trump winning the upcoming U.S. presidential election next month.“The market seems pretty convinced over the past 12 days that Trump $Trump Media & Technology(DJT)$ will win,” Druckenmiller said on Wednesday. “You can see it in the bank stocks, and you can see it in cryptocurrency.”However, Druckenmiller made it clear that he won't be voting for Trump—or for current Vice President Kamala Harris either. He called Trump a "blowhard," saying that Trump lacks the dignity to be president, while noting that a Harris presidency would be bad for business.“I’ll probably just write someone’s name in,” he said, adding that he hasn’t donated to any cand
Wall Street: Betting on a Trump Win!

3 Aspects Tell You Will US Equities Continue Their Rally After the Record Highs?

Last week, U.S. stocks hit historic highs, reflecting widespread optimism among investors. Now, the market’s attention has shifted to earnings reports and the upcoming Fed meeting in November, where there’s an 84% chance of a 25-basis-point rate cut.Looking back at last week, all major indices— $.IXIC(.IXIC)$ $.SPX(.SPX)$ $.DJI(.DJI)$—rose more than 1%, with the Dow and S&P 500 both hitting record highs on OCT11.Can the Rally Last Until Year-End?With the prospect of rate cuts, strong macroeconomic data, and solid corporate earnings expectations, U.S. stocks are on solid footing to potentially continue their upward trend. Let’s dive into three key indicators
3 Aspects Tell You Will US Equities Continue Their Rally After the Record Highs?

Is the Fed Likely to Cut Rates Only Once?

Bond markets showed increasing skepticism about the Fed delivering two more rate cuts this year. Currently, traders see only about a 20% chance that the Fed will keep rates unchanged in November or December. Even after last Friday’s strong U.S. jobs report, the swaps market still suggests that by the end of the year, the Fed will cut rates by over 50 basis points, potentially through two consecutive cuts.This week, U.S. Treasury bonds fell. Bloomberg's U.S. Bond Index is set for a fourth straight week of declines, marking the worst performance since April. The 10-year Treasury yield is back above 4%, while the 30-year yield hit 4.41%, the highest since July 30.This shift reflects a string of mixed economic reports from the U.S., which have failed to give the Fed a strong reason to ease mon
Is the Fed Likely to Cut Rates Only Once?

Wall Street Hesitates on U.S. Election Bets

With less than a month until Americans vote for one of the most influential presidents in U.S. history, Wall Street is unusually quiet. The so-called "smart money" isn't betting on the upcoming election."Never bet on a coin toss," says George Ball, head of Sanders Morris Harris, a Houston-based investment firm. "The election is too close to make any well-considered investment strategy."Hedge Funds Stay the Course $Goldman Sachs(GS)$ data shows hedge funds haven't reduced their stock positions as they typically would before an election. In fact, as the $S&P 500(.SPX)$ continues to hit new highs, they've increased their exposure. Meanwhile, options traders are more focused on the Fed's rate cuts and the s
Wall Street Hesitates on U.S. Election Bets

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