On Friday (28 Oct), we saw U.S. stocks ended in mixed mode after the close. Gains in the Technology, Oil & Gas and Consumer Goods sectors led shares higher while losses in the Telecoms, Utilities and Financials sectors led shares lower.
At the close, DJIA lost lost 0.61%, while the S&P 500 lost 0.03%, and the NASDAQ gained 0.56%.
The stock market experienced selling pressure after six consecutive weeks of gains for the S&P 500, which closed 1.0% lower this week. The DJIA also fell, ending the week down 2.7%.
Falling stocks outnumbered advancing ones on the New York Stock Exchange by 1738 to 1051 and 97 ended unchanged; on the Nasdaq Stock Exchange, 1779 fell and 1515 advanced, while 114 ended unchanged.
CBOE Volatility Index Up By More Than 6%
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was up 6.55% to 20.33.
Rising Note Yield Drive Profit Taking
This decline was partly due to profit-taking activities driven by rising market rates. The 10-year yield increased by 29 basis points to 4.246%, while the 2-year yield rose by 3 basis points to 4.122%.
The Nasdaq Composite managed a 0.2% increase for the week, buoyed by buying activity in mega-cap and semiconductor stocks. The $Vanguard Mega Cap Growth ETF(MGK)$ rose 0.3%, and the $Philadelphia Semiconductor Index(SOX)$ gained 0.1%.
The communication services sector was top with +0.71%, followed by information technology up +0.59% and consumer discretionary was also up +0.49% as Tesla (TSLA) contributed significantly to this performance following its impressive Q3 earnings and 2025 vehicle growth forecast.
We saw financials and utilities sectors losing more than 1% at -1.05% and -1.46% respectively.
Stocks To Watch
$NVIDIA Corp(NVDA)$ saw a 2% rise in its stock, bringing its market capitalization to $3.52 trillion, matching Apple's (AAPL) valuation. This positions Nvidia alongside Apple as one of the two most valuable companies globally, with Microsoft (MSFT) following at $3.2 trillion. Nvidia's market cap has tripled in less than a year, showcasing its significant gains from the AI revolution.
We are seeing significant improvement in the stock price movement though it start to form a sideway trading, but for the long term, we should be seeing a nice upside on NVDA, with possibility of hitting $180, as it is trading comfortably above the short-term and long-term MA, and MTF is also showing a strong uptrend.
I am expecting some strong upside trading this week with a number of mega cap earnings coming up as they are customers or potential customers of Nvidia, we should be able to see some reports on the buying of chips from Nvidia in their reports.
I am holding onto my Nvidia position.
Societe Generale noted a rise in Treasury yields, with the 10-year (US10Y) and 30-year (US30Y) yields hitting three-month highs. This increase is attributed to traders selling U.S. debt on the potential election victory of former President Donald Trump. The consensus in the rates market has shifted towards expecting higher rates driven by potential tax cuts and economic growth.
Bitcoin (BTC-USD) experienced a slight decline, hovering below $69,000 after failing to breach the $70,000 threshold. Analysts predict increased volatility for Bitcoin as the U.S. elections approach, with altcoins also showing mixed performance.
$Apple(AAPL)$ tested an app to help individuals with prediabetes manage their health, posing a competitive threat to companies like DexCom (DXCM) and Abbott (ABT). While the app isn't set for release, its technology may feature in future Apple health products.
Elon Musk, founder of $Tesla Motors(TSLA)$ and SpaceX, has reportedly been in discussions with Russian President Vladimir Putin. These talks, which span various topics, have raised national security concerns, particularly regarding Musk's Starlink satellite service.
Summary
I believe that the market this week will continue on a positive bias with the mega cap stocks earnings, and most of them should be posting earnings gaining from AI development.
There are some financials names to watch as well like Visa, Mastercard and PayPal, these stocks should be having their payment transaction increase, but how they manage the expenses to capture more new users will be something to look out.
Appreciate if you could share your thoughts in the comment section whether you think market would continue on a positive bias this week (28 Oct).
@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.
Comments