To The Moon

The stock market closed out another winning week with the S&P 500 and DJIA reaching new record highs. The Russell 2000 led the index gains with a 1.9% increase, while the S&P 500 rose 0.9%, the NASDAQ gained 0.8%, and the DJIA climbed 1.0%.

Gains were broad-based, driven by ongoing momentum as stocks continued to hit new highs. The equal-weighted S&P 500 increased by 1.1% compared to 11 Oct.

Real Estate, Utilities and Financial Sectors Gained More Than 2% For the Week

Over the last 7 days, the Utilities industry has risen 3.41%, and NextEra Energy contributed the most with a gain of 3.1%. This means that the industry has gained 40% over the past year. Looking forward, earnings are forecast to grow by 10% annually.

Last week's earnings news was generally well-received, contributing to the positive market sentiment. However, UnitedHealth (UNH), a Dow component, saw a sharp decline after its Q3 earnings report showed an increase in its medical care ratio and offered cautious FY25 earnings guidance. This affected the S&P 500 health care sector's performance, making it one of the two sectors to close lower, alongside energy, which fell 2.6% due to a drop in oil prices. WTI crude oil futures closed at $68.62 per barrel.

The financial sector performed well as investors processed a wave of earnings reports. Morgan Stanley (MS) and Goldman Sachs (GS) were among the standout performers. Market participants also speculated that the Federal Reserve might not be as aggressive as previously thought, following solid economic data, including stronger-than-expected September retail sales and less severe initial jobless claims.

Challenges Seen In Semiconductor Last Week

Semiconductor stocks faced challenges last week. The $Philadelphia Semiconductor Index(SOX)$ fell 2.4% following a Bloomberg report that the Biden administration is considering restricting sales of advanced AI chips to certain countries, particularly in the Persian Gulf. ASML (ASML) released its Q3 results early, disappointing investors with below-consensus earnings per share (EPS), revenues, and net bookings. The company also issued weaker-than-expected FY25 revenue guidance, citing slow recovery in other market segments despite strong AI developments.

Conversely, $Taiwan Semiconductor Manufacturing(TSM)$ reported strong Q3 results and better-than-expected Q4 guidance, sparking some buy-the-dip interest by the end of the week.

Note Yield Lower

10 Year Treasury Rate is at 4.082%, compared to 4.09% on Thursday and 4.98% last year. This is lower than the long term average of 4.25%.

Stock To Watch

$Netflix(NFLX)$ contributed to a rally on Wall Street, bolstering the S&P 500 index to a record weekly win streak. The streaming giant's post-earnings surge helped lift tech-heavy indices, highlighting the market's resilience amid broader economic concerns. Investors remain optimistic, buoyed by strong bank earnings and economic data suggesting a soft landing for the economy.

NFLX has seen a bullish MACD crossover upside formed after we saw a gap up following its earnings, and this has also helped NFLX to trade comfortably above both the short-term and long-term MA, which MTF also present a strong uptrend.

I believe this might be a good time to consider to take a position on NFLX as there would be more upside movement coming from NFLX.

UBS Global Wealth Management has upgraded its view on U.S. equities, citing the growing adoption of artificial intelligence and favorable economic conditions, including China's stimulus measures. The investment bank's positive outlook reflects expectations for continued market gains, supported by durable economic growth and rising real wages.

$Blackstone Group LP(BX)$ extended its winning streak, closing up for the seventh consecutive day. The investment firm reported strong Q3 earnings, driven by increased investment activity and fund appreciation, marking its best performance in three years.

You may take a look at my previous article on Blackstone. Blackstone (BX) Data Centre Investment Development In Focus

Multi time-frame is showing strong uptrend for Blackstone, and we are seeing very positive upside movement on the MACD as well. This should give confidence to investors that Blackstone increased investment activity should provide good yield for the short term and long-term.

If you are into long-term investment, Blackstone can be considered.

Summary

This week starting 21 Oct, we might be seeing some more upside from the financials, and tech stocks might make a rebound. I am expecting S&P 500 to create another new highs.

Appreciate if you could share your thoughts in the comment section whether you think 21 Oct week would present another positive momentum to end the week on a new highs?

@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.