To The Moon

The trading session on Wednesday (25 Sep) saw investors exhibiting cautious sentiment, causing weak buying in a lackluster session.

DJIA, S&P 500 and Russell 2000 was trading in negative territory for most of the sessions. Only NASDAQ managed to stay slightly positive with +0.04% which is helped by $NVIDIA Corp(NVDA)$‘s performance.

People's Bank of China provided policy stimulus by cutting its Medium-Term Lending Facility by 30 basis points to 2.00%. But we are not seeing this to trigger widespread buying.

There was a more than 2-to-1 margin where decliners exceeded advancers at the NYSE and NASDAQ. The equal-weighted S&P 500 declined 0.6%. Russell 2000 also declined by 1.2%.

We have the new home sales reported to be better than expected in August, aided by lower pricing and sliding mortgage rates. The South was the only region with a month-to-month sales increase.

MBA Mortgage Applications Index came in +11.0% week-over-week and August New Home Sales was 716K compared to consensus at 695K while previous was revised to 751K from 739K.

We will be expecting the following economic data on Thursday (26 Sep).

Only S&P 500 Utilities and Information Technology Was Up

Only two out of eleven S&P 500 sectors managed a gain, both utilities and information technology sectors gained +0.54% and +0.50% respectively.

Even with the strength in the information technology sector did not help to create a rally in the broader market, nine other S&P 500 sectors ended in the red.

Energy sector lost -1.90% due to tracking oil prices that fell despite geopolitical tensions. Health care sector also lost -0.94% because of losses in Amgen (AMGN, Financial), which reported disappointing drug data.

Materials sector, financials and industrials sector also lost -0.60%, -0.60% and -0.46% respectively. Consumer discretionary sector also lost -0.38% with mixed performance.

Even Tesla (TSLA) which gained 1.1% did not helped because the gain was offset by a pullback in Amazon.com (AMZN), down 0.7%.

Homebuilders dragged despite stronger-than-expected new home sales in August, with KB Home (KBH) declining 5.4% after a disappointing earnings report.

Note Yield Ended Mixed Due to Lack Of Buying Interest

Due to lack of buying interest, we are seeing 10-year note yield dropped by five basis points to 3.783% while 2-year note yield was up by six basis points to close at 3.563%.

The $70 billion 5-year note auction saw a high yield of 3.519%, matching the when-issued yield.

Stocks To Watch

$Micron Technology(MU)$ shares surged 10% in extended trading after reporting fourth-quarter results and guidance for the first quarter of fiscal 2025 that exceeded expectations. The memory maker earned an adjusted $1.18 per share, with revenue rising 93.3% year-over-year to $7.75B. The company's adjusted gross margin was 36.5%, beating the 34.7% consensus estimate. Western Digital (WDC) and Seagate Technologies (STX) also saw gains following Micron's strong performance.

If we looked at MTF, it looks like MU is trading below both the short-term and long-term MA and the long-term is crossing above short-term MA, this indicate a bearish downside, but Micron has surprise the market with result and earnings exceeded expectations.

So we could be seeing a reversal and with MACD showing an upside movement, we could see potential gap up when Micron started trading today (26 Sep). This could help other semiconductor stocks as well.

$Meta Platforms, Inc.(META)$ CEO Mark Zuckerberg announced several key developments at the Meta Connect 2024 event, including the Orion prototype mixed reality glasses. The company also introduced the Meta Quest 3s virtual reality headset, priced at $299.99, and slashed the price of its 512GB variant to $499.99. Additionally, Zuckerberg showcased new AI voice features, highlighting Meta's ongoing focus on artificial intelligence.

There have been positive signs from the technical analysis on META as MTF is showing strong uptrend potential over all period and the MACD is also moving in an upside movement.

Looking at how META might trade today (26 Sep), I am expecting an upside movement in META in the range of at least 1%.

Goldman Sachs analysts recommended buying $Tesla Motors(TSLA)$ call options ahead of its third-quarter earnings report and Robotaxi event. Tesla's call options account for 17% of all S&P 500 options volumes, surpassing Nvidia (NVDA). The EV giant is expected to unveil its full self-driving technology and business outlook at the upcoming Robotaxi event.

Tesla has displayed very positive signal from MTF with strong uptrend potential and the MACD is also showing an upside movement, so I believe Tesla could be creating new highs ahead of its third-quarter earnings report and Robotaxi event.

$Lightspeed POS Inc(LSPD)$ soared 13% after reports that the company is exploring options, including a possible sale. The Canadian payments software firm has engaged JPMorgan to solicit interest from potential bidders.

LSPD have a neutral signal from MTF despite MACD showing an upside movement potential, so I think it is worth to monitor how the possible sale could develop, and I am expecting another upside trading today (26 Sep).

OpenAI Chief Technology Officer Mira Murati announced her departure from the company. Murati, who has been with the Microsoft (MSFT)-backed startup for over six years, expressed her desire to explore new opportunities. OpenAI is currently in the process of raising additional funds.

Eli Lilly (LLY, Financial) and Novo Nordisk (NVO) are leading the race to develop oral obesity drugs, with potential new entrants like Pfizer (PFE) and Roche (RHHBY) also in the fray. Oppenheimer analysts suggested that a switch to over-the-counter status for these drugs could be a valuable strategy to maintain brand equity beyond patent expiry.

Paramount Global (PARA) declared a $0.05 per share quarterly dividend, maintaining its previous payout. The dividend is payable on January 2 to shareholders of record on December 16.

Walt Disney (DIS) has launched a password crackdown on its Disney+ streaming service, following Netflix's (NFLX) successful "paid sharing" initiative. The move aims to convert freeloading users into paying subscribers, potentially boosting Disney's revenue.

Summary

We could be seeing another slow buying session, and there might be some area we could look at, semiconductor sector could be making a move to the upside with Micron significant earning results.

There might be more upside coming from Tesla as well, and we could be seeing some of the tech stocks making some movement.

Appreciate if you could share your thoughts in the comment section whether you think market would continue to trade in a not so enthusiastic session?

@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.