To The Moon

Major US stock indexes are struggling due to a combination of factors, including US earnings reports and hawkish comments from Federal Reserve policymakers.

Stock market maintained stability at the index level. S&P 500 slightly declined by 0.05%, recovering from its opening low and settling near its intraday high. NASDAQ gained 0.18%, while DJIA remained largely unchanged.

Mega caps played a crucial role in supporting index performance, with Microsoft (MSFT) rising 2.1% and Meta Platforms (META) gained 1.2%

Earnings season has seen mixed results, recent earnings announcements received mostly negative reactions despite some positive results from blue-chip companies. Notable declines were seen in Dow components Verizon (VZ), down 5.0%, and 3M (MMM), down 2.3%. GE Aerospace (GE) and Lockheed Martin (LMT) also saw significant drops, falling 9.1% and 6.1% respectively.

Conversely, General Motors (GM, Financial) rose sharply by 9.8% to $53.73, following better-than-expected earnings and guidance.

US earnings picked up this week with a host of companies reporting. The surprisingly positive start to earnings season last week left market participants hopeful.

Despite some gains, many stocks continued to decline as part of a consolidation trend. Decliners outpaced advancers by a 3-to-2 margin on the NYSE and by a 4-to-3 margin on the Nasdaq.

Six S&P 500 Sectors Declined

The equal-weighted S&P 500 fell 0.5%, with six sectors declining. The industrial sector was the worst performer, dropping 1.19%, while the consumer staples sector recorded the largest gain, up 0.92%.

Note Yield Movement Add Downside Pressure To Equities

Rising market rates added to the downside pressure on equities. The 10-year yield increased by two basis points to 4.20%, which is 13 basis points higher than last Friday's close. But at time of writing, we saw it declined by one basis point to 4.213%.

The 2-year yield moved up by one basis point today and nine basis points this week, settling at 4.044%. US Treasuries increased as markets reacted to more aggressive comments from Federal Reserve policymakers. The US Presidential debate is also impacting Treasury markets, with investors watching for any possible changes to fiscal policy as betting odds favor a Donald Trump victory.

Stocks To Watch

Texas Instruments (TXN) shares saw a 1% increase in after-hours trading despite issuing a fourth-quarter guidance that fell short of expectations. The company's revenue for the quarter ending September 30 decreased by 8.4% year-over-year to $4.15 billion, with analog revenue falling 4% and embedded processing revenue dropping 27%. Despite the decline, cash flow from operations was robust at $6.2 billion over the past 12 months. Other analog chipmakers, including Analog Devices (ADI) and NXP Semiconductors (NXPI), also experienced modest gains in late trading.

$General Motors(GM)$ reported a strong third quarter, surpassing expectations and driving shares to their highest level since early 2022. The company saw significant growth in its electric vehicle market share, which rose to nearly 10%, up from 7.1% in the previous quarter. This performance was attributed to effective inventory management and a strategic focus on high-demand vehicles, marking a positive turnaround for the automaker.

GM has provided investors with a nice technical signal from the short-term and long-term MA and with MACD giving an upside movement signal clearly, we are also seeing MTF giving a strong uptrend, we might want to consider looking at this stock during trading today (23 Oct).

$BlackRock(BLK)$ expanded its exchange-traded fund offerings with the introduction of two new actively managed funds focusing on technology growth and artificial intelligence. This move underscores BlackRock's belief in the transformative potential of AI, which it sees as a profound long-term opportunity. Among the top holdings in these funds are $NVIDIA Corp(NVDA)$ , $Meta Platforms, Inc.(META)$ , and $Microsoft(MSFT)$ .

If we looked at BLK, it is actually trading well above the short-term and long-term MA, though it is trading sideway now, we might want to see that as an opportunity to buy in. Some cautious from MACD though as a declining signal is formed, but the MTF strong uptrend should give us confidence.

Among the top holdings, one of the stock, Nvidia should be making new highs soon, so this might be time for us to take advantage.

Nvidia though have been moving around $142 to $144 since beginning of this week, I am seeing Nvidia having a positive and strong momentum from the short-term and long-term MA, and MACD is also forming a positive upside movement signal.

For the MTF, it has been showing strong uptrend signal for NVDA, so I see it as a strong indication that NVDA is going to create another new highs soon after the selling pressure subsides and the normal consolidation complete its cycle.

I am holding onto my NVDA position. I believe NVDA is building its upside nicely to $160 - $170 level.

Summary

We are seeing that the selling pressure subsiding and also the normal consolidation cycle should be ending, I am expecting some upside trading coming from the mega cap and some of the tech stocks as well.

Not forgetting we are expecting economic on the Weekly MBA Mortgage Applications Index, September Existing Home Sales and also the EIA Crude Oil Inventories. So we might want to pay attention to some REITs stocks and also energy stocks.

Appreciate if you could share your thoughts in the comment section whether you think market would be making a rebound as normal consolidation cycle should be ending.

@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.