Will Questionable Tech Earnings Be Enough to Change Sentiment?
With tech stock earnings disappointing investors, does this mean that we’ll see a change in sentiment? Plus, three new ideas from me.
A Quiet Start to the Week
It’s a quiet start to a busy week for US economic data, with October’s Dallas Fed manufacturing survey and September’s Chicago Fed National Activity Index the only reports.
The Fed remains in its blackout period ahead of the October 27–28 FOMC meeting, so there are no Fed speakers.
Non-Bill (>1yr in maturity) US Treasury auctions include a $69bn 2-year note auction.
Nine S&P 500 components report, two of them with market caps over $100bn:
- Before the open: Verizon ($VZ)
- After the close: Welltower ($WELL), Cadence Design Systems ($CDNS), Nucor ($NUE), Public Storage ($PSA), The Hartford ($HIG), Brown & Brown ($BRO), Principal Financial ($PFG) and Alexandria Real Estate Equities ($ARE)
Despite Warnings, Tomorrow Won’t Bring the Market Bottom
An updated look at S&P 500 support levels as we stick to the sidelines.
Flash PMI Signals Strong Economy, But Raises Inflation Worries
A pick up in jobs will keep the Fed focused on inflation, but the report is a flag for corporate margins and EPS.
Who’s In and Who’s Out of the New iPhone Models?
Plus, Ciena gets an upgrade, market index changes, and Well Fargo on diesel prices.
Tech Leads In A Narrow Market
Tech stocks did the heavy lifting as rising yields and the first factory-output drop of the year keep the rest of the market on its heels
Weekly Roundup: September Is Living Up to Its Reputation
During the week of challenging developments, we refreshed out shopping list, exited one holding and added to four others.
Tech Leads a Subdued Open on a ‘Triple Witching’ Friday
U.S equities are mixed Friday morning with Tech names providing some boost while other names lagged as bond yields rebounded.
Upside, Downside Movers in the Morning
Upside
– $MEDS +30% (litigation settlement is expected to extinguish about $19 million of liabilities and retire 364,099 shares)
– $USDE +17%, $PURR +7.0%, $MSTR +2.8%, $HOOD +2.2% (crypto and tokenization-linked stocks rise as Bitcoin rallies and regulators grant temporary relief for tokenized U.S. stock trading)
– $STUB +6.0% (Citi upgrades to Buy from Neutral)
– $GOOGL +2.0%, $GOOG +1.9% (no clear fresh company-specific catalyst identified; unusually strong megacap premarket outperformance)
– $ETSY +1.1% (BTIG upgrades to Buy, citing improved valuation, positive demand tracking and a better cost structure)
Downside
– $XENE -22% (pauses new enrollment in Phase 3 depression trials after a liver-related safety event, overshadowing the focal-seizure NDA submission)
– $AEMD -9.9% (reverses part of the prior-day merger-driven surge; existing holders are expected to own about 4.75% of the combined company)
– $ARRY -4.2% (UBS downgrades to Neutral and flags growing cash preferred-dividend obligations that could pressure free cash flow)
– $NFLX -3.2% (Wells Fargo downgrades to Underweight, citing weakening engagement and a softer original-content slate)
– $NUE -2.3%, STLD -2.1% (steelmakers fall after STLD’s Q3 earnings outlook missed expectations)
– $DLR -2.0% (rate-sensitive stocks fall as Treasury yields edge higher)
Oil Ticks Lower, Steel Sends Warning: 8 Key Items Shaping the Stock Market Friday
Buffett steps down, the FCC and SpaceX’s Starlink Mobile and other headlines moving the market this morning.