To The Moon

With US markets facing renewed volatility, I think it is worth looking beyond technology and AI stocks today.

Rising Treasury yields, inflation concerns and uncertainty surrounding the Federal Reserve’s next move are making investors more selective.

On Thursday, the Dow Jones, S&P 500 and Nasdaq all closed approximately 0.4% lower, while the Russell 2000 fell 1.7%. Oil prices also moved higher amid renewed geopolitical uncertainty.

One interesting development is that investors may start paying more attention to businesses with established cash flows, pricing power and relatively defensive demand.

Here are five non-technology stocks on my watchlist for Friday.

1. Walmart (WMT) – Can consumer spending remain strong?

Walmart is worth watching because its business is closely connected to everyday consumer spending.

When households become more cautious about their budgets, consumers may shift towards retailers offering competitive prices.

Walmart benefits from its large distribution network, grocery business and ability to attract customers across different income groups.

However, rising operating costs and pressure on household spending remain important considerations.

What I’m watching:

• Comparable-store sales growth.

• Grocery and general merchandise demand.

• Operating margins.

• Management’s outlook for consumer spending.

The interesting question is whether Walmart can continue gaining customers while protecting its profitability.

2. UnitedHealth Group (UNH) – Is healthcare becoming attractive again?

Healthcare is another sector worth monitoring.

UnitedHealth operates across health insurance and healthcare services, giving it exposure to a large and relatively essential market.

However, the company has faced challenges involving medical costs, reimbursement rates and regulatory scrutiny.

These factors can create significant uncertainty around future profitability.

What I’m watching:

• Medical care ratio trends.

• Membership growth.

• Medicare Advantage developments.

• Earnings guidance.

UNH could attract investors looking beyond high-growth technology stocks, but its operational challenges should not be underestimated.

3. Chevron (CVX) – Can higher oil prices support energy stocks?

Chevron is worth watching as oil prices respond to geopolitical developments and changing expectations around global supply.

Higher oil prices can support revenue and cash flow for energy producers.

Chevron also has an integrated business covering exploration, production, refining and chemicals.

This provides different sources of earnings across the energy cycle.

However, higher oil prices do not automatically mean higher share prices. Production costs, capital expenditure and global demand also matter.

What I’m watching:

• WTI crude oil prices.

• Production levels.

• Free cash flow.

• Dividend sustainability and share buybacks.

For investors looking for exposure outside technology, Chevron offers a different set of market drivers.

4. Progressive (PGR) – Insurance profitability is the key

Progressive is an interesting insurance stock to watch.

Its business is supported by demand for automobile insurance, while profitability depends heavily on underwriting discipline, claims costs and pricing.

Unlike technology companies, Progressive’s growth is not dependent on AI spending or semiconductor demand.

However, higher vehicle repair costs, accident frequency and competition can affect its margins.

What I’m watching:

• Premium growth.

• Combined ratio.

• Claims costs.

• Renewal pricing.

The combined ratio is particularly important. A lower ratio generally indicates stronger underwriting profitability.

5. McDonald’s (MCD) – Can value dining support growth?

McDonald’s is another defensive consumer stock worth monitoring.

When household budgets are under pressure, consumers may become more selective about restaurant spending.

Its global brand, franchise model and value-focused menu offerings provide important competitive advantages.

However, the company still faces challenges from food inflation, labour costs and changing consumer preferences.

What I’m watching:

• Comparable sales growth.

• Customer traffic.

• Franchise profitability.

• International market performance.

The key question is whether McDonald’s can maintain customer traffic without relying too heavily on discounts.

What could move the broader market today?

The biggest economic event to watch is the US October Producer Price Index (PPI).

Producer prices provide an indication of inflationary pressures faced by businesses.

If input costs continue increasing, companies may face pressure on margins or need to pass higher costs on to consumers.

Treasury yields are another important indicator.

Higher yields can make income-producing investments more attractive relative to equities and increase financing costs for businesses.

I would also watch oil prices because energy costs can influence inflation expectations and consumer spending.

My Trading Plan

I would not chase stocks simply because the technology sector is under pressure.

Instead, I would focus on three areas:

1. Consumer staples and retailers with strong pricing power.

2. Healthcare companies where operational improvements could support earnings recovery.

3. Established energy businesses with sustainable cash flow.

Among today’s five stocks, Walmart and Progressive are particularly interesting because their businesses are driven by everyday consumer needs rather than the AI investment cycle.

Chevron offers a different opportunity, but its performance will depend heavily on oil prices.

Final Thoughts

Market volatility can create opportunities outside the sectors that usually dominate headlines.

Technology and AI may continue attracting long-term investment, but a diversified portfolio should not depend entirely on one market theme.

Sometimes the most interesting opportunities are found in less exciting businesses that generate cash flow, serve everyday needs and maintain their profitability through different economic conditions.

For today, I will be watching $Wal-Mart(WMT)$ $UnitedHealth(UNH)$ $Chevron(CVX)$ $Progressive(PGR)$ and $McDonald's(MCD)$ 

For discussion purposes only.