To The Moon

The stock market on Tuesday (26 Nov) was in a positive bias with stocks rose helping to push major indexes to record highs as the S&P 500 gained ground for the seventh straight session.

We saw the DJIA and S&P 500 gained 0.28% and 0.57% respectively, helping both to reach all-time closing highs, while NASDAQ also went up by 0.63%. Stocks have started the week on Monday on a high note as a post-election rally that stalled briefly has regained momentum over the past week.

Minutes released Tuesday of the Federal Open Market Committee's meeting on 06-07 Nov emphasized that the Fed is likely to take a slow-and-steady approach to rate cuts from here on out after starting off their rate-cutting campaign with a bang in September. Fed officials cut the central bank's benchmark interest rate by 0.25 percentage points in November after cutting 0.5 points from a two-decade high in September.

S&P 500 Utilities Sector Led The Pack

Tuesday's top performance in the S&P 500 belonged to shares of electricity generator $NRG Energy Inc(NRG)$ , which surged 10.1% after Jefferies upgraded the stock to "buy" from "hold" and lifted its price target. The 10% increase have helped the Utilities sector to gain +1.56% to led the pack.

Shares of large-cap tech companies were mostly higher Tuesday. Microsoft (MSFT) and $Amazon.com(AMZN)$ rose 2.2% and 3.18%, respectively, while Nvidia (NVDA), Apple (AAPL), Alphabet (GOOGL) and Meta Platforms (META) also advanced. Tesla (TSLA) finished slightly lower, adding to the previous session's downturn. Consumer Discretionary sector managed to come in second at +0.90%.

I am holding my Amazon position as I am a long time customer for AWS, and I have seen how AWS offerings have improved over the year, this has make businesses like mine able to scale and grow without incurring heavy CAPEX cost.

Eli Lilly (LLY) and Novo Nordisk (NVO) gained 4.6% and 1.5%, respectively, boosted by news that the Biden administration is proposing to expand coverage of weight loss drugs such as Ozempic and Mounjaro under Medicare and Medicaid, making them more accessible to millions of new patients. Shares of Amgen (AMGN) were down 4.8%, weighing on the Dow, after the biotech company reported disappointing trial results for a weight loss drug.

Retailers were among the big movers on Tuesday after reporting quarterly results this morning. Shares of Dick's Sporting Goods (DKS) closed 1.4% lower after gaining 7% in early trading, while Best Buy (BBY) and Kohl's (KKS) fell 4.9% and 17%, respectively. Kohl's also announced late yesterday that CEO Tom Kingsbury is stepping down after less than two years in the role.

Bitcoin Slide Cause Crypto Stocks Decline

Bitcoin (BTCUSD) was trading at around $92,100, sliding for the second straight day after hitting a record high of just below $100,000 on Friday. Despite the recent decline, bitcoin has gained about 35% since the U.S. election on optimism that a Trump White House and crypto-friendly Congress will implement policies that benefit the asset class.

We saw crypto stocks regardless of mining or platform, losing ground, some lost more than 10%.

Note Yield Rose After Big Decline On Monday

The yield on 10-year Treasurys rose to 4.30%, after a big decline yesterday sent the yield to its lowest level since early November at 4.26%. The two-year yield was up two basis points to 4.260%.

Yields had been rising steadily for several weeks as market participants recalibrated their expectations about how aggressive the Federal Reserve would be in cutting interest rates.

Stocks To Watch

NRG Energy (NRG), which surged 10.1% after Jefferies upgraded the stock to "buy" from "hold" and lifted its price target. Analysts pointed to improved expectations for NRG's cross-selling opportunities. They also increased their estimates for earnings before interest, taxes, depreciation, and amortization (EBITDA) as they accounted for the company's growth plans.

As we can see, this upgrade has helped NRG buying strength to increase and also MACD is forming a bullish MACD crossover, and we should be seeing more upside movement moving forward.

The improved expectations NRG's cross-selling opportunities should be able to catalyse upside movement in near term.

Shares of Dell fell 8% in after-hours trading following the release. They were up 85% from the start of the year through Tuesday’s close after Dell (DELL) posted third-quarter revenue that fell short of analysts’ expectations, sending shares lower after the closing bell Tuesday. The server and personal computer maker delivered revenue of $24.4 billion, a 10% rise year-over-year but below the analyst consensus from Visible Alpha. Its net income of $1.13 billion, or $1.58 per share, was up from $1 billion, or $1.36 per share a year earlier, beating estimates.

$General Motors(GM)$ shares skidded 9.0% following Trump's warning about levying a 25% tariff on goods from Canada and Mexico. GM has a significant manufacturing presence in both neighboring countries, but especially Mexico, where the automaker produces full-size pickup trucks. Shares of Chrysler parent Stellantis (STLA), which also has manufacturing facilities in Mexico, slipped 5.7%.

Summary

We should see this positive momentum continuing on Wednesday (27 Nov) as there have been some positive news of Israel and Hezbollah agreeing to ceasefire deal, this could take away some of the geopolitical tensions concerns from investors.

I think we should be seeing some good fund inflows into the crypto market as well as the mega cap, so we should see better gains for the major indices today (27 Nov).

Appreciate if you could share your thoughts in the comment section whether you think market would continue the rally with more positive momentum.

@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.