To The Moon

The major indices experienced losses across the board as losses in the Dow Jones Technology, Dow Jones Basic Materials and Dow Jones Financials sectors led shares lower.

At the close in NYSE, the DJIA fell 0.90% to hit a new 1-month low, while the S&P 500 lost 1.86%, and the NASDAQ fell 2.76%.

The biggest gainers of the session on the DJIA were Verizon Communications Inc (VZ), which rose 2.06% at the close. Amgen Inc (AMGN) added 1.46% and Walt Disney Company (DIS) was up 1.19% in late trade.

Biggest losers included Microsoft Corporation (MSFT), which fell 6.03% in late trade. Intel Corporation (INTC) declined 3.50% and Amazon.com Inc (AMZN) down 3.28%.

The top performers on the S&P 500 were Paycom Soft (PAYC) which rose 21.41% ,Entergy Corporation (ETR) which was up 15.16% and International Paper (IP) which gained 13.30%.

The worst performers were Huntington Ingalls Industries Inc (HII) which was down 26.16% in late trade, Estee Lauder Companies Inc (EL) which lost 20.90% and Aptiv PLC (APTV) which was down 17.72% at the close.

The top performers on the NASDAQ were Starbox Group Holdings Ltd (STBX) which rose 1,115.90%, Root Inc (ROOT) which was up 68.91% and Plby Group Inc (PLBY) which gained 41.24%.

The worst performers were MDJM Ltd (MDJH) which was down 59.37% in late trade, Equillium Inc (EQ) which lost 37.61% and Elevai Labs Inc (ELAB) which was down 36.49% at the close.

Falling stocks outnumbered advancing ones by 1976 to 828 and 77 ended unchanged; on the Nasdaq Stock Exchange, 2488 fell and 819 advanced, while 94 ended unchanged on the New York Stock Exchange.

Impact From Microsoft and Meta Earnings Reports

Microsoft (MSFT) and Meta Platforms (META) saw significant declines following their earnings reports, contributing to a broader market downturn. Other mega caps also influenced index performance, leading the Vanguard Mega Cap Growth ETF (MGK) to close 3.0% lower.

Market participants are focused on the upcoming October Employment Situation Report and its potential implications for Fed policy.

The PHLX Semiconductor Index (SOX) decreased by 4.0%, with Monolithic Power (MPWR) being the worst performer despite beating Q3 expectations due to weaker-than-expected guidance.

S&P 500 Information Technology Worse Performer

Affected by weakness in major tech stocks, we saw the S&P 500 Information Technology sector declining 3.57% to become the worst performer.

Consumer Discretionary sector came in second with -1.81% contributed by significant declines in Aptiv (APTV), MGM Resorts (MGM), and eBay (EBAY).

Utilities and Energy sectors are the only ones in the green with help from oil increase where crude oil for delivery in December rose 2.65% or 1.82 to hit $70.43 a barrel, while the January Brent oil contract rose 2.52% or 1.82 to trade at $73.98 a barrel.

Volatility in the Treasury Market Continued

Volatility in the Treasury market persisted, with the 10-year yield lost four basis point settling at 4.286% and the 2-year yield lost one basis point to close at 4.179%.

Economic data, including low initial jobless claims and the Q3 Employment Cost Index, influenced these movements.

CBOE Volatility At New 1-Month High

The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was up 13.81% to 23.16 a new 1-month high.

Stocks To Watch

Microsoft (MSFT) and Meta Platforms (META) faced significant declines following their earnings reports, dragging the technology sector down by 3.6%. Despite Microsoft reporting strong revenue growth, its reduced guidance for Azure cloud revenue contributed to market disappointment. Meanwhile, Meta's performance also added to the tech-heavy Nasdaq Composite's worst day since September 3.

$Intel(INTC)$ shares surged 10% after the company reported third-quarter results that exceeded Wall Street expectations, highlighting progress in its restructuring plan. Competitors Nvidia (NVDA) and AMD (AMD) also saw gains following Intel's positive report. Despite a year-over-year revenue decline, Intel's results were better than anticipated, boosting investor confidence.

Even though we saw a positive earnings from Intel, looking at the price action on Intel stock movement, it is still relatively weak, it is currently hovering below the 50 day MA period and 200-day period is above 50-day period indicating we might see a bearish trend continuing.

So I would stay and continue to monitor and see if strength in Intel continued.

$Amazon.com(AMZN)$ experienced a notable rise in after-hours trading following its report of better-than-expected operating income and strong guidance for the holiday quarter. The e-commerce giant's North American and international revenues both saw significant growth, with AWS revenue meeting expectations, contributing to a positive outlook for the company.

With a significant earnings result which saw a nice movement after the earnings, we could be seeing more upside movement coming from Amazon. With Amazon showing that there is possible of returns on AI investment, we could see AI value being focused now.

I hold a position in Amazon.

OpenAI, backed by Microsoft (MSFT), introduced new search features to ChatGPT, escalating competition with Alphabet's (GOOGL) Google. The AI startup aims to provide users with fast, relevant answers through web searches, enhancing its service offerings and competitive edge in the AI space.

$Carvana Co.(CVNA)$ continued its upward momentum, achieving record highs as its online car sales model gains traction. The company reported a stellar quarter with significant sales and profit growth, projecting continued success into the next quarter.

This is a stock which we can consider as it has showed that they have gotten a stellar quarter and their stock price is also in a comfortable level, so I am expecting more upside from this stock.

Super Micro Computer (SMCI) experienced a sharp decline, erasing year-to-date gains amid concerns about its direct liquid cooling systems and recent auditing issues. The company's stock has been volatile, reflecting ongoing market uncertainties.

Summary

While Intel might help to push some of the semiconductor stocks up, but generally I would think to avoid semi for now, the focus might be the release of the latest nonfarm payrolls data, which could provide further guidance for the Fed officials as they meet next week.

This could continue to drive the sell-off in technology, or we could see a rotation. So I would monitor the market movement today (01 Nov) for what we can expect next week.

I believe Amazon could go up to above $200 if the sentiment for AI spending investment returns continued to be echoed by AI software companies.

Appreciate if you could share your thoughts in the comment section whether you think tech sector would continue to experience sell off or Amazon should help tech stocks to recover some.

@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.