To The Moon

After Thursday (21 Nov) session began with some uncertainty as investors digested earnings reports from AI favorite Nvidia (NVDA) and other technology companies, while bitcoin continued its march toward $100,000. Stocks managed to finish higher.

Initially, NVDA shares dipped due to profit-taking and a slight slowdown in revenue growth. However, the report was strong overall, with NVIDIA noting "staggering" demand for its Blackwell chip.

Despite early weakness in NVDA, there was a positive bias throughout the session. The S&P 500 gained 0.53% to extend its winning streak to four consecutive days, while the DJIA added 1.06% and the Nasdaq Composite finished fractionally higher (0.03%). Russell 2000 climbed by 1.7%, all closing near their session highs.

Volume rose on the New York Stock Exchange and the Nasdaq from Wednesday's totals. Advancing stocks led decliners by a 7-to-2 ratio on the NYSE and by 2-to-1 on the Nasdaq.

We can see money rotated from mega caps into other market areas. Stocks had turned in a mixed performance on Wednesday as market participants awaited the highly anticipated release of Nvidia's results.

Economic Data Review and Upcoming

The labor data show a rising trend in continuing jobless claims, indicating a softening labor market with increased difficulty in finding new employment post-layoff.

Home sales show an increase in inventory, but affordability remains constrained due to high median home prices and elevated mortgage rates, limiting sales potential.

We will be expecting the Flash November S&P Global U.S. Manufacturing PMI at 9:45 ET with previous standing at 48.5. Flash November S&P Global U.S. Services PMI at previous 55 also expected at same time.

Final November University of Michigan Consumer Sentiment expected at 10am ET with consensus at 73 where previous is also at 73.

Sector Performance

Nine of the 11 S&P 500 sectors finishing higher, with five sectors gained 1.0% or more. Utilities sector led the pack with 1.75$ gain, financials, consumer staples and industrials also gained with 1.27%, 1.24% amd 1.23% respectively.

The industrial sector benefited from an earnings-driven surge in Deere & Co. (DE), which rose 8.1%. Conversely, the communication services sector was the worst performer, dropping 1.7%, primarily due to a significant decline in Alphabet (GOOG) following reports that the DOJ may force a sale of Chrome and potentially Android.

Broad buying activity pushed the Invesco S&P 500 Equal Weight ETF (RSP) up by 1.3%, with nine of the 11 S&P 500 sectors finishing higher.

Note Yield Ended Higher

The Treasury market ended with losses after a stronger-than-expected Existing Home Sales report for October, which recorded 3.96 million sales against a consensus of 3.90 million. Additionally, weekly jobless claims decreased to 213,000 from 219,000, and the Philadelphia Fed Survey disappointed with a reading of -5.5, below the consensus of 7.0.

The 10-year yield decreased by six basis points to 4.419%.. The 2-year yield declined by eight basis points to 4.349%.

Stocks To Watch

Dow Jones stock $Salesforce.com(CRM)$ led the blue chip index with a 3.1% gain. The stock is extended from the buy range of a long cup base with a 318.71 buy point. Software stocks were strong on the stock market today. In addition, TD Cowen raised its price target to 340 from 290 and maintained its hold rating on the stock.

I think CRM still have rooms for more upside movement as seen from MTF giving a strong upward trend, though MACD is showing a declining downward movement, I think we should continue to see software stocks trading strongly on Friday (22 Nov).

$NetApp(NTAP)$ shares rose sharply after the company posted strong Q2 earnings and raised its full-year guidance. The data storage company reported a 6.1% increase in revenue year-over-year, surpassing analysts' expectations, and adjusted its earnings outlook positively for the year.

If we looked at NTAP, there is some potential as it has trade above short-term and long-term MA and MACD is making an upside movement, MTF has also gave us confidence with a strong upward trend.

So I would be watching NTAP price action today (22 Nov) as I expect a small pullback, then we can actually take a position.

$Energy Transfer LP(ET)$ continued its upward trajectory, gaining over 3.8% in recent trading sessions. The company has been optimistic about the future under the new U.S. administration, which is expected to favor the oil and gas industry, potentially benefiting ET's operations.

$Apple(AAPL)$ is reportedly working on a more conversational version of its Siri voice assistant to compete with AI models like ChatGPT. This updated version, expected to be announced in 2025, aims to enable more natural conversations and faster processing of requests. This move comes as Google (GOOGL) has launched its Gemini AI chatbot on the App Store, featuring a conversational voice mode similar to OpenAI's offerings.

$Hims & Hers Health Inc.(HIMS)$ saw a notable stock increase after a Texas federal court closed a case involving the FDA's decision on Eli Lilly's (LLY) drug tirzepatide. This move benefits companies like Hims & Hers, allowing them to continue producing compounded versions of the drug until the FDA issues a new decision.

In a significant development, Google's (GOOG) partnership with the AI startup Anthropic is under scrutiny as part of the Department of Justice's antitrust case against the tech giant. The DOJ is proposing that Google divest its Chrome web browser as part of the resolution. This move could unravel Google's collaboration with Anthropic, especially if the court rules against Google, which has been labeled a monopolist. The company expressed concerns that the DOJ's proposal could hinder its AI investments.

$Amazon.com(AMZN)$ might face an EU investigation next year over potential favoritism towards its brands on its platform. If found in violation of the Digital Markets Act, Amazon could be fined up to 10% of its global sales. The decision will hinge on the new EU antitrust chief, Teresa Ribera, who will assume her role soon.

I would think that this might be one way that EU is deploying to protect their ecommerce market, but AMZN should still be able to provide strong growth from its AWS business segment, and this investigation might take some time. I am holding onto my AMZN position.

Shares of PDD Holdings (PDD) dropped significantly following their Q3 earnings report, which missed expectations due to a 48% surge in revenue costs. The increased costs were attributed to higher fulfillment and payment processing fees, prompting concerns about the company's financial management.

Summary

I think the market might be showing signs of rotation, as the focus on crypto stocks are currently on how Bitcoin price moved. But there have been news to affect some of the mega cap like GOOGL and AMZN, and this might have another effect on other technology stocks.

So I am expecting another volatile trading session early, then market recover later in the day to close slightly higher and the week higher.

Appreciate if you could share your thoughts in the comment section whether you think market would still trade in volatility and later recover to close higher for the week.

@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.