Dow futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures, with earnings season still in full swing. But investors’ focus will also turn to a pivotal Federal Reserve meeting, as well as the October jobs report.
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The stock market rally had a volatile week, but eventually showed resilience and strength amid heavy selling Microsoft (MSFT), meta pads (dead), Amazon.com (AMZN) and the father of Google the alphabet (The Google). Dow Jones, Russell 2000, and eventually the S&P 500 liquidated their 50-day streaks. The Nasdaq didn’t, but rebounded to post strong weekly gains apple (AAPL) on its quarterly results.
Earnings season is still filled with major corporate reports. Arista Networks (Network), Albemarle (ALB), CF . Industries (CF), Cheniere Energy (liquefied natural gas) And the Quanta Services (PWRNext week’s report. ANET, Albemarle, CF, Cheniere and Quanta Services stocks are all close to potential buying points.
Here is the bonus stock: on semiconductors (on me), often known as Onsemi, before opening Monday. ON stock is close to entering the trend line. But this electric chip maker has shown a lot of activity in stocks in the past few months.
LNG stocks running IBD Leaderboard, while ALB and CF Industries are on the watch leaderboard. Arista Networks and CF Stock on List of 50 IBD.
The video included in this article highlights a pivotal week in the market, with Arista Networks, Albemarle and LNG stocks analyzed.
Fed meeting
The Federal Reserve meets on November 1 and 2, as policymakers prepare to raise interest rates again. Some relatively mild inflation data and various central bank moves and signals around the world have boosted hopes that the Fed will soon switch to smaller rate hikes.
Markets are still strongly anticipating that the Fed will raise rates by 75 basis points for the fourth consecutive meeting, although there is now little chance of a move of only half a point. But for the December meeting, the bet turned toward a half-point rate hike.
So investors will pay close attention to the Fed’s policy statement at 2PM ET on Wednesday, especially Fed Chair Jerome Powell’s 2:30PM press conference, for any pivotal hints from the Fed.
But there is still plenty of economic data to move the Fed ahead of the year-end Fed meeting, including two jobs reports. The October jobs report is due next Friday, three days after the September JOLTS survey. Signs of a easing labor market could boost the pivotal hopes of the Federal Reserve. But strong employment and lower unemployment could point to more significant price increases and a higher end point.
Dow jones futures contracts today
Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.
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stock market rise
The stock market rally saw some volatility and divergence related to earnings during the week, but in the end all the major indices rose strongly.
The Dow Jones Industrial Average rose 5.7% in stock market tradingIts fourth consecutive weekly gain. The S&P 500 gained nearly 4%. The Nasdaq Composite is up 2.2%, including Friday’s 2.9% rise. The price of the small Russell 2000 rose by more than 6%.
Apple stock rose 5.75% last week, including a 7.6% rise on Friday. Dow Jones, S&P 500 and Nasdaq titan shares jumped above the 50-day line and closed just under 200 days. But AAPL stock needs to make more progress on the right side of the base. Microsoft stock was down 7.7% on Wednesday, and closed the week down 2.6%. Google stock fell 4.8% last week while Meta collapsed 23%. Amazon shares slid 13%, even after paring losses on Friday.
The 10-year Treasury yield fell 20 basis points to end at 4.01 on Friday, ending a 12-week winning streak. The 10-year bond yield rebounded from Thursday’s low of 3.91%, close to the 21-day line.
Meanwhile, the 3-month Treasury yield is 4.09%, now higher than the 10-year yield. This is a stronger recession signal than the two-year/10-year coup, which began several weeks ago.
US crude oil futures rose 3.4% to $87.90 a barrel last week.
ETFs
between the Best ETFsThe Innovator IBD 50 ETF (fifty) rose 3% last week, while the Innovator IBD Breakout Opportunities ETF (fit) rose by 4.8%. iShares Expanded Technology and Software Fund (ETF)IGV) is up 4%, even with MSFT stock having a significant holding. VanEck Vectors Semiconductor Corporation (SMH) is up 3.45%, and it all comes on Friday.
SPDR S&P Metals & Mining ETFs (XME) rose 0.7% last week. Global Infrastructure Development Fund X US (cradle) jumped 5.5%. US Global Gates Foundation (ETF)Planes) rose 5.6%. SPDR S&P Homebuilders ETF (XHB) rose 7.1%. SPDR Specific Energy Fund (SPDR ETF)XLE) and the Financial Select SPDR ETF (XLF) rose by 2.7%. SPDR Healthcare Sector Selection Fund (XLV) rose 5%, regaining the 200-day streak.
Shares reflect more speculative stories, the ARK Innovation ETF (see you) jumped 8.4% last week and the ARK Genomics ETF (ARKG) vault 10%.
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Stocks near the points of purchase
ANET stock jumped 9.9% to 121.47 in the largest weekly volume in eight months, bouncing above the 50-day and 200-day moving averages. All of this weekly gain came mainly on Thursday, as Arista Networks is seen as a significant beneficiary of Meta Platforms’ reverse spending. ANET stock has cleared a short trendline, providing an early entry. A move above Thursday’s high at 126.53 may offer another entry point from a longer trendline. But earnings are on the table on Monday night.
ALB stock rose 3.8% to 280.16 last week, reclaiming the 50-day streak. Price action has been encouraging over the past two weeks, but volume has been light. Albemarle stock contains 308.34 buy point. A strong move above 287.07 October 26 high could offer an entry for the lithium giant. Albemarle earnings are due Wednesday night. The complexity of the matter: Levent (LTHM) Tuesday night reports. LTHM stock has a similar scheme.
LNG stocks fell 0.75% to 174.48 last week, but bounced back from their 21-day and 10-week streaks. Cheniere Energy’s inventory is now short cup base with handle With 178.69 purchase points. Cheniere’s earnings are due Thursday.
CF stock fell 1.6% to 105.68 last week, reversing slightly lower on Friday after trying to make a decisive move above the 50-day line and short-term levels. But it did keep the 10, 21, and 50-day streaks, which are stacked closely together. A break of Friday’s high at 110.59 could provide an early entry, with 119.70 official buy points. CF earnings due Wednesday. Playing fellow fertilizer neutrino (NT) And the Basil Potash (Container) report Wednesday, but these stocks don’t look healthy.
Quanta Services stock rose 5.8% to 141.18 last week, reclaiming its 50-day streak. Shares jumped 8.1% in the previous week. The PWR stock could be forming a handle on the daily chart, which is lined up with a short trend line. Currently, Quanta’s stock has a file cup base With an official purchase point of 149.43, according to MarketSmith Analysis. Quanta Services, which provides infrastructure services to the utility industry, reports Thursday.
The “bonus share” in semiconductors rose 2.7% last week to 67.48, moving back above the 50-day moving average. It is not far from the downward sloping trend line from the late August high. Onsemi stock has shown some resilience given the play of fellow EV chip mates Wolfspeed (wolf) crashed based on last week’s instructions.
Therefore, On Semiconductor earnings are worth seeing early Monday. But ON stock has such big daily and weekly moves that it should probably be called On-and-Off Stock.
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Market Rise Analysis
The stock market rally showed resilience in the face of heavy losses from giant tech companies. The S&P 500, after hitting resistance at the 50-day moving average, rose decisively on Friday. The Russell 2000 is moving towards the 200-day line while the Dow Jones has already crossed that level on Friday as its winning streak spans six sessions and four weeks.
The Nasdaq is lagging, but it moved back above the 21-day line on Friday and rose strongly during the week.
While last week was encouraging, we still don’t know if this is a bear market rally or something else.
Can the Nasdaq now move above the 50-day line, then run at the 200-day line and beyond?
While earnings made headlines, falling Treasury yields and a weaker dollar were the main tailwinds for stocks this past week. These reflect the central hopes of the Federal Reserve.
The Fed rate hike next Wednesday and October jobs report on Friday will be key to the market rally.
Meanwhile, in the event of a little reversal, while the major indices are rising, the blue-chip stocks looked less star-studded.
As Brian Shannon of AlphaTrends said on IBD Live Friday, he’s “too skinny” when it comes to buying opportunities.
Energy names are still doing well, with LNG stocks nearing a buying point. So are some of the names for defensive growth in healthcare. Discounts, auto parts retailers, insurance companies and a few restaurants are highlights, with many of those defensive plays. But many of those names are among them Eli Lilly (LLY) And the O’Reilly Motors (Orly), has already been extended.
Traditional, high-growth names are not particularly good. There have been some notable setbacks or sell-offs in that space. Cloud computing weaknesses in Microsoft Azure and Amazon Web Services have led to criticism of cloud software stocks. But bragging about spending on Meta helps ANET stock, pure storage (PSG) and maybe some chip makers like nvidia (NVDA). Intel Corporation (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 beaten up.
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What are you doing now
The stock market rally had some big headwinds this past week, which it handled well in the end. But the Fed meeting looms large this week, along with a steady earnings stream.
Investors can add some exposure, but they may choose to at least wait for the Fed meeting. In the case of shares of ALB, Arista Networks, CF Industries, and many other companies, investors are likely to wait for earnings results. The still limited number of executable shares at the moment is also reason to be cautious about adding new trades. The constant daily and weekly volatility of the major indices and individual stocks increases the level of difficulty.
But the stock market rally is going well. Investors must participate. Build your own watch lists, making sure you have a variety of quality stocks.
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