Across major indices, we saw equity market closed with gains. S&P 500 and NASDAQ both rose close to 0.30% at 0.27% and 0.26% respectively.
DJIA also increased by 0.65% and Russell 2000 surged by 1.6%. Many stocks saw upward movement following last week's declines at the index level.
Advancers outnumbered decliners by approximately a 2-to-1 margin at both the NYSE and Nasdaq. This positive trend occurred ahead of a busy week for earnings reports.
On Tuesday (29 Oct), we will be expecting the August FHFA Housing Price Index, August and August S&P Case-Shiller Home Price Index at 9am ET, followed by October Consumer Confidence, September JOLTS - Job Openings at 10am ET.
Notable Earnings This Week By Influential Stocks
This week we will be expecting several influential companies which are set to report earnings. Their performance have supported the major indices on Monday (28 Oct).
Alphabet (GOOGL) which will report on TUesday (29 Oct) was up 0.88%, Meta Platforms (META) was up 0.86% before its earning release on Wednesday (30 Oct). Microsoft (MSFT), which will also report on Wednesday, was down 0.36%.
Apple (AAPL) and Amazon.com (AMZN) closed higher at 0.86% and 0.31% respectively, will release their results on 31 Oct (Thursday).
S&P 500 Energy Sector Lost 0.65%
Monday saw the energy sector to close with a loss of 0.65%, and the losses was a reaction to falling oil prices. WTI crude oil futures dropped 6.1% to $67.39 per barrel, following Israel's limited retaliation against Iran, which spared oil and nuclear facilities.
Losses in NVIDIA (NVDA) down 0.72%, and Broadcom (AVGO) down 0.6%, contributed to the information technology sector closing 0.07% lower, making it the only second lagger after Energy sector.
Despite early Treasury yields, stocks maintained an upward trend throughout the session. With financials topping the group with 1.14% gain.
Note Yield Recent Rise Might Overshadow Mega-Cap Earnings
The 10-year note yield which is sensitive to expectations around where interest rates are headed, closed at 4.272% after rising as high as 4.30% during the session, a new three-month high.
The early increase followed a $69 billion 2-year note auction with poor demand and a $70 billion 5-year note sale that priced worse than expected but had decent internals.
The yield has been rising in recent weeks as market participants recalibrate their expectations about how aggressive the Federal Reserve will be in cutting its benchmark lending rate.
For the shorter term, 2-year note yield have dropped 18 basis points to close at 4.135%.
Stocks To Watch
$Alphabet(GOOGL)$ the parent company of Google, is set to release its Q3 earnings report, which could significantly impact Big Tech stocks. Hedge fund manager Dan Niles highlighted the importance of Alphabet's performance in setting expectations for other tech giants like Meta (META) and Microsoft (MSFT), which will report later this week. Alphabet's results are expected to show strong Google Cloud performance, buoyed by political ad spending, despite previous stock pressure following its Q2 report.
We are seeing a potential bullish MACD crossover coming from GOOGL, and GOOGL is trading comfortably above the short-term and long-term MA, this should give confidence to investors that we are going to see some strong performance from its earnings today (29 Oct), and Alphabet has a 10.55% weightage on the S&P 500 Communication Services sector (XLC).
So with a uptrend from MTF, I an expecting that XLC to also closed with a positive gains if both GOOGL and META earnings provide a surprise.
I am holding onto my position in GOOGL, as I believe GOOGL as a strong cloud provider still has room for more growth.
$Ford(F)$ reported a Q3 Non-GAAP EPS of $0.49, surpassing expectations by $0.02, with revenue reaching $43.07 billion, a 4.6% year-over-year increase. The automaker's Ford Pro segment saw a 13% revenue rise, with software subscriptions up 30%. However, shares fell 3% as the company forecasted a full-year loss of about $5 billion for its Model e division, despite strong projections for Ford Pro and Ford Blue.
If we looked at Ford, even though there is an EPS expectation beat the share price still fell because of a full-year loss forecast, and if we looked at Ford stock price, it is trading with the short-term and long-term MA, and MTF is giving a neutral signal, and MACD is indecisive on which direction to move.
So if you are holding Ford, you may want to hold and look for an opportunity to DCA, I will be waiting for some more correction before deciding to enter.
Boeing (BA) is making moves to bolster its financial position by raising approximately $19 billion through public offerings. The company plans to sell 90 million shares of common stock and $5 billion in preferred stock, with options for underwriters to purchase additional shares. This initiative is aimed at addressing cash burn and upcoming maturities, assuming no further production issues arise.
NextEra Energy (NEE) announced plans to issue $1.5 billion in equity units to fund energy and power projects. Each unit will include a contract to purchase common stock in the future and a beneficial interest in a debenture due in 2029. This move aims to support the company's long-term investment strategy and manage its commercial paper obligations.
Bank of America has reinstated coverage on North American gas-levered E&Ps, with a bullish outlook on natural gas. The bank issued new Buy ratings for companies like EQT (EQT) and Exelon (EXC), citing capital discipline and AI/LNG demand growth as key factors for a positive market outlook in 2025.
Summary
With GOOGL results expected after market close today (29 Oct), we might be seeing investors adopting the wait and see attitude before we see some activities, we might see some positive bias as investors might be looking for some ‘buy-the-dip’ deal on maybe Nvidia and Broadcom?
Appreciate if you could share your thoughts in the comment section whether you think market would give a positive bias ahead of some of the big tech earnings this week.
@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.
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