To The Moon

The stock market saw gains due to broad-based buying interest, with S&P 500 reaching a new high, this is driven by strong performance in semiconductor stocks following Micron's (MU) better-than-expected earnings report and guidance.

Investors are optimistic as they believe that global growth prospects will improve as the Federal Reserve, European Central Bank, and People's Bank of China move towards more accommodative policies.

There are other central banks like Swiss National Bank and Mexico's central bank which have cut their key policy rates, suggesting more cuts may follow.

Chinese ADR stocks have also benefited from the positive news from China regarding potential policy stimulus and a reassuring initial jobless claims report.

On the US side, we saw encouraging economic data from initial jobless claims which has dropped by 4,000 to 218,00 while consensus was 224,000. Continuing jobless claims increased by 13,000 to 1.834 million.

We also saw durable goods orders came in flat month-over-month in August against the consensus at -2.9%, but excluding transport, order were up 0.5%.

The Q2 GDP - third estimate remained the same as consensus at 3.0%. Pending home sales increased by 0.6% in August while consensus was given at 1.0% but higher than -5.5% recorded in July.

PCE and Consumer Sentiment Expected On Friday.

We will be expecting August Personal Income at 8.30ET with consensus given at 0.4%.Also, Personal Spending will be released with consensus at 0.1%.

The key economic data to watch would be the PCE Price Index with consensus at 0.1%, Core PCE Price Index with consensus at 0.2%. August Adv. Intl. Trade in Goods will be next with the previous at -$102.7 billion. Adv. Retail Inventories with previous 0.8%, Adv. Wholesale Inventories with previous at 0.3%.

At 10am ET, we will be expecting Final September University of Michigan Consumer Sentiment with consensus at 69.0.

Materials Sector Boosted By Copper Futures Rose

Materials sector was the only S&P 500 sector with above 1% gain at 1.97%, it was boosted by the Caterpillar (CAT) performance which also helped the industrials sector which gained +0.50%.

Consumer discretionary have a slight gain at +0.14% but not much due to the weak performance from Amazon.com (AMZN) and Tesla (TSLA), though CarMax (KMX) made a notable move, rising 5.0% after its earnings report.

Despite the positive economic outlook, oil prices continued to decline as OPEC+ confirmed it would proceed with planned oil output increases in December. WTI crude futures fell 3.0% to $67.68/bbl, negatively impacting the energy sector, which was the weakest area today with a 2.0% decline.

Note Yield Closed Lower Despite Rise Followed Economic Data

Treasury note yield did increase following Thursday’s economic data, but at the end of the day, the 10-year yield was down five basis point to close at 3.795%. 2-year note yield was also down by four basis point to close at 3.633%.

Stocks To Watch

$Accenture PLC(ACN)$ received an upgrade from Piper Sandler to Overweight after surpassing its fiscal fourth-quarter results expectations and issuing a Q1 revenue outlook that topped estimates.

We are seeing strong bullish signal from the MACD as there is a potential bullish crossover coming for ACN, and on the MTF side, we are also seeing strong uptrend as ACN continue to trade above both the short-term and long-term MA.

I would think that there is some potential in this stock, I will be watching the price action to prepare to take a posiiton.

$Costco(COST)$ reported Q4 GAAP EPS of $5.29, beating estimates by $0.23, although its revenue of $79.69B missed expectations by $340M. Despite the revenue miss, the earnings beat highlights Costco's strong operational efficiency. The retailer continues to be a dominant player in the retail food sector, although some analysts express concerns about its long-term growth potential.

From the MTF, it looks like there are upside potential but the MACD is showing a concern as there might be a bearish crossover formed.

So I would suggest that we monitor the price action for COST in 27 Sep trading if you are planning to take a position on this stock.

$Apple(AAPL)$ is reportedly developing a new product that combines the functionalities of an iPad, Apple TV, and HomePod. Codenamed J490, the device will feature a square screen and be powered by the A18 chip. It is expected to launch in the spring of 2025.

$Alphabet(GOOGL)$ announced a $3.3B investment in South Carolina to expand its data center and cloud infrastructure. This investment aims to create local jobs and support economic activity, further strengthening Google's cloud capabilities.

We are seeing that GOOGL is nearing the short-term MA on the MTF even though MACD is making an upside signal. There is uptrend potential from what I see it.

This increase in investment should help to get investors confidence on GOOGL stock price.

I have taken a position when GOOGL experienced a downside, and I believe there is much more potential with GOOGL taking advantage to invest in data centre to capture the AI demand, I am looking towards $175 price target for GOOGL.

Summary

I would think that there is positive bias coming back though the buying and selling might be slow as the market comprehend the PCE data also the consumer sentiment. I am expecting tech and semiconductor stocks to make a recovery on Friday (27 Sep).

Appreciate if you could share your thoughts in the comment section whether you think market would make a recovery after the PCE and consumer sentiment economic data?

@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.