To The Moon

The stock market continued its winning streak with another solid move higher. Stocks closed higher Thursday, with the S&P 500 and Nasdaq Composite rising for the fourth straight day, as the market continues its recovery from last week's selloff.

The S&P 500 and NASDAQ gained 0.75% and 1%, respectively, while the DJIA added 0.58%. The major indexes have recovered a big chunk of the losses that were recorded last week amid concerns about the health of the economy and volatility in technology stocks.

The major indexes are on track to post weekly gains, after suffering their worst week in more than a year last week. 23 of the 30 Dow components settled higher.

NVIDIA (NVDA) surged 1.92% to $119.14, nearly 16% higher than Friday's close.

On the economic data front, weekly jobless claims and monthly wholesale price inflation numbers released early Thursday were mostly in line with economists' expectations. Data releases have had a big impact on market sentiment in recent weeks as market participants look for clues about the health of the economy and an indication of how aggressive the Federal Reserve might be when it starts cutting interest rates for the first time in four years.

Thursday's economic releases were among the last pieces of data coming before next week's meeting of the Fed's policy committee. Fed officials have signaled that they are poised to start reducing the influential fed funds rate, but they've stressed that data will drive the decisions on the pace and depth of the easing.

All 11 S&P 500 Sectors In Positive Gains

All 11 S&P 500 sectors registered gains, with communication services gaining +2.01% and consumer discretionary gain +1.15%) sectors leading the way.

The energy sector was a strong performer, driven by rising commodity prices. WTI crude oil futures rose 2.5% to $68.97 per barrel, and natural gas futures increased by 4.0% to $2.36 per mmbtu.

The rate-sensitive real estate sector logged the smallest gain at 0.1% as market rates moved up slightly.

Note Yield Settled Lower

The 10-year note yield which is sensitive to expectations around interest rates, settled twenty-nine basis points lower to close at 3.65% , the 10-year note yield had fallen to its lowest level in more than a year, around 3.60%, early Wednesday after the release of the monthly consumer price report. while the 2-year note yield also settled forty-one basis points lower to close at 3.607%.

Stocks To Watch

$Adobe(ADBE)$ reported impressive Q3 results, with a Non-GAAP EPS of $4.65, surpassing estimates by $0.11. The company generated $5.41 billion in revenue, a 10.6% increase year-over-year, and exceeded expectations by $40 million. Adobe's GAAP net income stood at $1.68 billion, while non-GAAP net income was $2.08 billion. The company also repurchased approximately 5.2 million shares and reported a Digital Media ARR of $16.76 billion. For Q4, Adobe projects total revenue between $5.50 billion and $5.55 billion.

Despite an impressive Q3 results, Adobe saw the stock price dropped by more than 8% in after-hours trading.

From the chart below on 1 hour, we can see that there is heavy selling from investors, this could be due to the repurchase of shares not that welcomed by investors, I would think it is better to monitor before deciding to take any position.

Moderna (MRNA) plans to launch an mRNA-based vaccine for skin cancer as early as next year. CEO Stéphane Bancel mentioned that the company's factory is almost ready, and the product could be available in six months. The vaccine, mRNA-4157, has shown promising mid-stage data in combination with Merck's (MRK) Keytruda for high-risk melanoma. A Phase 3 trial is substantially enrolled, and discussions for FDA approval are ongoing.

RH (RH) posted a Q2 Non-GAAP EPS of $1.69, beating expectations by $0.08. The company reported $829.66 million in revenue, a 3.7% year-over-year increase. For Q3, RH expects demand growth between 12% and 14% and revenue growth between 7% and 9%. Shares of RH surged by 15.4% following the announcement.

$Unity Software Inc.(U)$ shares jumped 8% after the company announced it was canceling the Runtime Fee for its games customers and increasing subscription fees for its largest customers. The change aims to improve game development and strengthen partnerships with developers.

If we looked at the technical using MACD and KDJ, it looked like U is forming a upside from MACD bullish crossover and we are also seeing an upside potential from KDJ, the J value is forming a nice upwards movement.

You may want to consider taking a position on this stock.

$Warner Bros. Discovery(WBD)$ CEO David Zaslav expressed optimism about the company's long-term growth, citing a strong content portfolio and better distribution deals. The company expects to gain more than 6 million subscribers this quarter and exceed $1 billion in EBIT next year. Shares rose by 9% following Zaslav's comments at a recent conference.

From the technical, it looks like we are going to see a nice MACD bullish crossover build up and KDJ have already show a nice upside from the J value.

I would be expecting WBD to continue an upside trading.

$Amazon.com(AMZN)$ announced an additional investment of over $2.1 billion in its Delivery Service Partner program. The funds will be used for safety programs, training, and incentives, aiming to increase driver pay to a national average of nearly $22 per hour.

The news should draw positive reaction from investors as the technical have showed upside movement potential on AMZN stock price.

MACD has bullish crossover and KDJ is also having a nice upside movement from the J value moving upwards.

Berkshire Hathaway's (BRK.A) vice chairman of insurance operations, Ajit Jain, sold some of his class A shares for $139.1 million. Jain now controls 166 class A shares, with 61 directly owned by him.

Snowflake (SNOW) noted that its top customers are shifting towards traditional large enterprises, making longer-term commitments. CFO Michael Scarpelli mentioned that the company has enough GPUs and will only increase them if revenue supports the investment.

Summary

We could be seeing market responding well this week to the anticipation of Fed rate cut decision next week, so we are looking for more upside trading today (13 Sep) to end the week on a positive note.

But there are some sectors which we might want to look at, mega cap stocks might make a nice comeback and semiconductor stocks could ride on Nvidia rise to benefit.

Appreciate if you could share your thoughts in the comment section whether you think market would close this week on a positive notes.

@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.