Last Week's Recap
1. The US Market - $.SPX(.SPX)$ and $.DJI(.DJI)$ refreshed new record highs.
Both the $.SPX(.SPX)$ and the $.DJI(.DJI)$ surged to new record highs Friday, sealing six straight weeks of gains. This marked the longest string of weekly advances in 2024.
This would be atypical for an election year, stocks will be strong into the election and then have some volatility fall on the election. Investors already pricing in a win from Republican nominee and former President Donald Trump, whose policies would be more business friendly in terms of taxes and regulations. according to Rob Williams, chief investment strategist at Sage Advisory.
September retail sales muscled past forecasts even as August spending was revised higher. The U.S. economy now looks to have grown at a 3% pace for a second straight quarter in Q3, S&P Global said, up from its prior tracking estimate of 2.6%.
$Gold - main 2412(GCmain)$ hit a all-time high of $2,734.40 on Saturday for the fifth positive week in six.
$Bitcoin(BTC.USD.CC)$ traded as high as $68,347 on Friday, with a weekly gain of more than 7%.
2.The US Sectors & Stocks - $Taiwan Semiconductor Manufacturing(TSM)$ surged while $ASML Holding NV(ASML)$ tumbled
The $SPDR Gold Shares(GLD)$ hit new record high, and the$VanEck Gold Miners ETF(GDX)$ jumped more than 7% for the week, as gold prices rose above $2700.
Banks ETF - KBE topped new record high as $Goldman Sachs(GS)$ , $Bank of America(BAC)$ , $Morgan Stanley(MS)$ and $Citigroup(C)$ all clearing estimates. Goldman Sachs and Morgan Stanley broke out after reporting strong earnings well above estimates as their net interest income increased. BofA earnings fell, but shares rose as well. Citigroup's lower EPS beat, but shares reversed lower. All four banks saw double-digit gains in investment banking revenue.
Airline stocks are capping off a strong week with $United Continental(UAL)$ showed a solid performance. The $U.S. Global Jets ETF(JETS)$ jumped more than 7% last week.
$Taiwan Semiconductor Manufacturing(TSM)$ ’s stock price rocketed after it delivered a big beat-and-raise earnings report. TSMC said its earnings rose 54% in Q3 while sales increased 39%, thanks to strong sales of chips for AI and smartphones. This led $NVIDIA Corp(NVDA)$ , $Broadcom(AVGO)$ and $ARM Holdings Ltd(ARM)$ also advanced.
$ASML Holding NV(ASML)$ shocked Wall Street with its disappointing third-quarter bookings and lowered 2025 guidance. ASML stock dived to a 2024 low with a 14% weekly loss. The Dutch semiconductor-equipment leader said gear for AI chips is providing upside, but other market segments are taking longer to recover.
$Netflix(NFLX)$ comfortably topped Wall Street's targets and guided above views for the current period. Its earnings jumped 45% with revenue up 15% to $9.83 billion. The video streamer added 5.1 million subscribers Q2, to 282.7 million worldwide.
$Intuitive Surgical(ISRG)$ shares jumped as it beat earnings with a 26% EPS gain with revenue rising 17% to $2.01 billion. The number of procedures using Intuitive Surgical's best-known system, da Vinci, climbed 18% year over year feeding into 18% growth for sales of single-use instruments and accessories.
3. Hong Kong Market - $HSI(HSI)$ rebounded on Friday, but still lost 2.11%
Hong Kong stocks rebounded on Friday to close the week, as investor sentiment was given a lifeline by China's latest funding initiatives and positive economic data. However,the Hang Seng Index (HSI) still lost 2.11% for the week.
The Chinese central bank has launched 800 billion yuan funding schemes to uplift the stock market and restore investor confidence. The country's gross domestic product swelled by 4.6% in the third quarter, a decline from 4.7% in August but higher than the 4.5% increase predicted by Reuters-polled economists.
Property firms surged as the Hong Kong Monetary Authority introduced new measures to encourage property purchases in the backdrop of declining demand and a drop in home prices.
4. Singapore Market - $Straits Times Index(STI.SI)$ was up 1.86%
Singapore's stocks gained this week. Benchmark the Straits Times Index (STI) was up 1.86% last week. Singapore's central bank left its monetary policy settings unchanged, as expected, as data showed the economy picked up pace in the third quarter.
Singapore’s key exports continued its upward climb in September as both electronics and non-electronics shipments rose.Non-oil domestic exports (NODX) grew 2.7 per cent year on year for in September, extending the 10.7 per cent jump in the previous month.
$SIA(C6L.SI)$ offers more than 420,000 discounted air tickets. The number of tickets is unprecedented. SIA itself will make available more than 200,000 business class, premium-economy class and economy class round-trip tickets from Singapore to 78 global destinations.
Singapore's economy grew 4.1% in the third quarter from a year earlier. On a quarter-on-quarter seasonally adjusted basis, GDP expanded 2.1% from the second quarter.
5.Australian Market - $S&P/ASX 200(XJO.AU)$ rose 0.8%
The benchmark ASX 200 rose 0.8% to 8283.2 points, and has risen 9% this year. The share market conceded that the Reserve Bank was absolutely right not to cut interest rates this year.
With Australian employment growth now hitting a 16-month high and workforce participation at a record, with inflation still sticky, the Reserve Bank’s caution in holding back against the clamour of voices calling for interest rate cuts this year was well and truly justified.
Gold miners were some of the rare winners after the price of the precious metal broke a fresh all-time high above US$2711 an ounce. Regis Resources (ASX: RRL) rocketed 22% for the week, while Newmont (ASX: NEM) shares continued to rise 6%.
The Week Ahead
1. Macro Factors - $Tesla Motors(TSLA)$ earnings around the corner
With the macroeconomic calendar light on major catalysts this week, as well as a general lull expected in anticipation of the U.S. presidential election next month, the earnings results should be the main factor determining whether stocks, which are trading near all-time highs, can go still higher.
The economic-data highlights of the week will include the National Association of Realtors' existing-home sales report for September on Wednesday, S&P Global's Manufacturing and Services Purchasing Managers' Indexes for October on Thursday, and the Census Bureau's durable goods report for September on Friday.
As it is, valuations are stretched, according to Sam Stovall, chief investment strategist at CFRA Research. He noted that the S&P 500 is trading at a 40% premium to its long-term P/E ratio, while tech stocks are trading at upwards of 60%.
2、Earnings
More than 70 $.SPX(.SPX)$ companies have reported earnings this season. Of those, 75% have beaten expectations, according to FactSet. There will be a significant jump in the number of companies set to report third-quarter results in the days ahead. About 20% of the broader index plans to report this week.
$Tesla Motors(TSLA)$ is scheduled to release its third-quarter earnings report on 23 October after the bell. Here is what to expect
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