Dow Jones futures opened Sunday night, along with S&P 500 futures and Nasdaq futures, with earnings season still in full swing. But investors’ attention will also turn to the all-important Federal Reserve meeting and his October jobs report.
Stock market rally had a volatile week, but ultimately showed resilience and strength amid selling microsoft (MSFTMore), meta platform (meta), Amazon.co.jp (AMZN) and Google’s parent alphabet (Google). The Dow Jones, Russell 2000 and eventually the S&P 500 cleared his 50-day line. The Nasdaq did not, but rallied due to strong weekly gains. apple (AAPL) soared in its quarterly results.
Earnings season is still full of top company reports. Arista Networks (ANET), Albemarle (ALB), CF Industries (CF), cheniere energy (liquefied natural gas) When Quanta Service (PWR) will report back this week. ANET stock, Albemarle, CF, Cheniere and Quanta Services are all approaching potential buy points.
Here are the bonus stocks: ON Semiconductor (on), commonly known as On Semi, reported before opening on Monday. On-stock is near trendline entry.
A video embedded in this article highlights a pivotal market week while analyzing Arista Networks, Albemarle and LNG inventories.
Federal Reserve Board
The Federal Reserve will meet on November 1-2, and policymakers are expected to raise rates again. Some relatively benign inflation data and various central bank actions and signals around the world have fueled hopes that the Fed will soon be headed toward tapering rate hikes.
Markets still strongly expect the Fed to raise rates by 75 basis points at its fourth consecutive meeting, but now there is only a 0.5 point chance of a rate hike. At the December meeting, however, the bets shifted to the Fed’s half-point rate hike.
Investors should therefore pay close attention to the Fed’s policy statements on Wednesday at 2:00 pm ET, especially Fed Chairman Jerome Powell’s 2:30 pm press conference, for hints on how the Fed might turn around. increase.
But before the Fed’s year-end meeting, there will still be plenty of economic data to drive the Fed, including two jobs reports. The October Jobs Report is due out this Friday, three days after his JOLTS survey in September. Signs of an easing labor market could heighten hopes for a Fed pivot. However, strong employment and falling unemployment could point to further significant rate hikes and higher endpoints.
dow jones futures today
Dow Jones futures open Sunday at 6:00 pm ET, along with S&P 500 and Nasdaq 100 futures.
stock market rally
The stock market rally had some big swings and divergences related to the week’s earnings, but in the end all major indices posted strong gains.
The Dow Jones Industrial Average rose 5.7%. stock market trading, weekly increase for 4 consecutive weeks. The S&P 500 index is up nearly 4% for him. The Nasdaq Composite rose 2.2%, including his 2.9% spike on Friday. Small-cap Russell 2000 surged more than 6% of his.
Apple shares rose 5.75% last week and surged 7.6% on Friday. The Dow Jones, S&P 500 and Nasdaq Titan stocks closed above his 50-day line and just below his 200-day line. However, the AAPL stock needs to move further on the right side of the base. Microsoft shares, which fell 7.7% on Wednesday, ultimately ended the week down 2.6%. Google’s stock fell 4.8% last week, while Meta crashed 23%. Even after containing Friday’s losses, Amazon’s stock plunged 13%.
The 10-year Treasury yield plunged 20 basis points on Friday to end at 4.01, ending a 12-week streak of gains. The 10-year yield rebounded around the 21st line from Thursday’s intraday low of 3.91%.
Meanwhile, the 3-month Treasury yield is 4.09%, currently above the 10-year yield. This is a stronger recession signal than his 2-year/10-year reversal that started a few weeks ago.
Last week, US crude futures rose 3.4% to $87.90 a barrel.
In between best ETFsInnovator IBD 50 ETF (FFTY) rose 3% last week, the Innovator IBD Breakout Opportunities ETF (game) rose 4.8%. iShares Expanded Tech Software Sector ETF (IGV) rose 4%, despite MSFT shares being a major holding. VanEck Vectors Semiconductor ETF (SMH) was up 3.45%, all on Friday.
SPDR S&P Metals & Mining ETF (XME) rose 0.7% last week. Global X US Infrastructure Development ETF (pave) increased by 5.5%. US Global Jets ETF (jet) increased by 5.6%. SPDR S&P Homebuilders ETF (XHB) increased by 7.1%. Energy Select SPDR ETF (XLE) and the Financial Select SPDR ETF (XLF) increased by 2.7%. Healthcare Select Sector SPDR Fund (XLV) rose 5% and regained the 200-day line.
Stocks close to buy point
ANET’s stock rose 9.9% to 121.47, the highest weekly trading volume in eight months, and rebounded above the 50- and 200-day moving averages. Arista Networks is seen as a notable beneficiary due to the surge in spending on Meta Platforms’ metaverse. ANET stock has cleared the short trendline and is offering early entry. A move above Thursday’s intraday high of 126.53 could provide another entry from the longer trendline. But earnings are coming out Monday night.
ALB’s share price rose 3.8% last week to 280.16, regaining the 50-day line. The past two weeks have been encouraging, but volume has been low. Albemarle stock is 308.34 point of purchaseA strong move above the Oct. 26 high of 287.07 could provide entry for the lithium giant. Albemarle’s earnings are paid out Wednesday night. Complicating matters: live vent (LTHM) reports Tuesday night. The LTHM stock has a similar chart.
LNG stocks fell 0.75% last week to 174.48 before rebounding from the 21-day and 10-week lines. Cheniere Energy Co., Some LNG Stocks Close to Buy Pointwhich is now short cup base with handle 178.69 in the entry. Cheniere’s earnings are due to be paid out on Thursday.
CF shares fell 1.6% last week to 105.68, falling slightly on Friday after attempting a decisive move above the 50-day line and short-term levels. But it holds the 10th, 21st and 50th lines and they stack closely together. A break above Friday’s high of 110.59 could offer early entry with 119.70 being the official buy point. CF proceeds will be paid out on Wednesday.Companion manure play nutrition (NTR) When Intrepid Cali (pot) also reported on Wednesday that these stocks don’t look all that healthy.
Quanta Services shares rose 5.8% last week to 141.18, regaining the 50-day line. The stock jumped 8.1% in the previous week. PWR stocks may form handles on the daily chart alongside short trendlines.Currently, Quanta stock has cup base According to the official purchase point is 149.43. marketsmith analysisQuanta Services, which provides infrastructure services to the utility industry, reported on Thursday.
The ‘bonus stock’ ON Semiconductor rose 2.7% last week to 67.48, above its 50-day moving average. Not far from the downtrend line from the late August peak.Onsemi stock showed some resilience given that fellow EV chips played wolf speed (wolf) crashed in this week’s guidance.
Earnings for ON Semiconductor are therefore worth watching early on Monday. But on stocks move a lot from day to day and week to week, so perhaps we should call them on and off stocks.
Market rally analysis
Equity market gains showed resilience in the face of big losses from tech megacaps. The S&P 500 rose decisively on Friday after reaching resistance at the 50-day moving average. The Russell 2000 is moving towards his 200-day line, but the Dow Jones actually topped that level on Friday, with the streak reaching his six sessions and his four weeks.
The Nasdaq has lagged behind, but has risen significantly this week after surpassing the 21-day line on Friday.
It’s been an encouraging week, but it remains to be seen if this is a bear market or more.
Can Nasdaq Rise Above the 50-Day Line and Above the 200-Day Line?
While earnings made headlines, falling US Treasury yields and a weaker dollar were key tailwinds for equities over the past week. These reflect expectations of the Fed’s pivot.
This Wednesday’s Fed rate hike and Friday’s October jobs report will be key to the market’s rally.
Meanwhile, major stocks looked a little less stable while major indices rose.
As AlphaTrends’ Brian Shannon said on IBD Live Friday, he’s “pretty skinny” when it comes to buying opportunities.
Energy stocks remain strong, with LNG stocks nearing a buying point. There are also some names for defensive growth in the healthcare sector. Discounters, auto parts retailers, insurers and some restaurants stand out, many of them playing defensively. However, many of those names are Eli Lilly (Lily) When O’Reilly Automotive (Orly), already extended.
Traditional high-growth companies have performed particularly poorly. There have been some notable flips or sales in that space. Cloud computing weaknesses in Microsoft’s Azure and Amazon Web Services blamed cloud software stocks. But a surge in Meta spending is helping his ANET stock. pure storage (PSTG) and possibly some chip makers such as NVIDIA (NVDA). intel (INTC) jumped on bad results and guidance, suggesting that bad news is bad news for INTC and chip stocks in general. But they are generally defeated.
what to do now
The stock market rally suffered significant headwinds last week, but ultimately handled them well. But this week’s Fed meeting is looming large, with an ongoing earnings flood.
Investors can add some exposure, but they may at least choose to wait for the Fed’s meeting. We should wait for the announcement. The still limited number of stocks currently viable is another reason to be cautious about adding new positions. The ongoing intraday, daily and weekly volatility of major indices and individual stocks adds to the difficulty.
But the stock market rally is working well. Investors should participate. Create a watchlist to collect a variety of high-quality stocks.
read big picture Every day to stay in sync with market direction and major stocks and sectors.
Follow Ed Carson on Twitter. @IBD_E Carson Stock market updates and more.
You’ll probably also like: