On Friday, the Nasdaq fell 3.6% and the S&P 500 fell 2.7%, the worst single day for both indexes since April 4, as part of the sell-off that followed President Donald Trump’s “Emancipation Day” tariff offensive. Both indicators broke support at their 21-day exponential moving averages, but remained above their 50-day lines.
This signals a week of high tension, as Congress continues its weak efforts to restart the federal government. oracle (ORCL) and Salesforce.com (Customer relationship management) Hosting major AI conferences and companies including Taiwan Semiconductor Co., Ltd (TSM), JP Morgan (JBM), Goldman Sachs (A) and Charles Schwab (Southwest) Setting the third quarter earnings season in motion.
Stocks to Watch: Software stocks are flat
The market was running at record levels, until a hiccup on Friday took many stocks out of buy zones and away from buy points. But many held their ground. The focus is on software makers, incl Crowd Strike (Veneer), Zscaler (ZS), Snowflake (snow), oracle (ORCL) and Palantir Technologies (mushroom). Zscaler stock fell slightly on Friday, after briefly looking above a cup base buy point. CrowdStrike fell back below the cup-with-handle entrance, undermining the 10-day line. Oracle played with entering the trend line on Friday before pulling back. Palantir also pulled back from a buy point. Both Oracle and Palantir rebounded from brief stumbles over the past week.
Stock Market Economics: Data Still Deadlocked by Congress
The government shutdown is expected to last until at least Tuesday, when the Senate returns to session. Air traffic delays and concerns about military pay in the middle of the month are increasing pressure for a solution. Democrats continue to push for an extension of enhanced ACA subsidies that are set to expire at the end of the year. Republicans still insist that an agreement can only be reached after the government reopens. The CPI will not be released on Wednesday as scheduled. The Bureau of Labor Statistics has called in some employees to prepare the report before the Federal Reserve’s policy meeting on October 28-29. The September CPI is also needed to determine the annual cost of living increase for Social Security.
Earnings season: Banks top third-quarter reports
Major banks begin the third-quarter reporting season with the impact of tariffs and focus on Fed rate cut expectations. jp morgan, Citigroup (C) and Goldman Sachs (A) Tuesday report. Bank of America (Buck), Morgan Stanley (Ms), Palestinian National Council (Palestinian National Council) and Citizens Financial Group (CFG) Results will be delivered on Wednesday. Analysts expect that the profits of Citizens and Goldman Bank will rise to the highest level.
Despite CEO caution, this major bank is heading higher ahead of its earnings report
Blue Chip Magazine: Dow Jones Opens Q3 on a Hot Note
The Dow Jones Industrial Average swings into early action this quarter American Express (Earn), Johnson & Johnson (JNJ) and Travelers (luxury) joining JPMorgan and Goldman Sachs in opening the third quarter season. This represents approximately 25% of the index’s weight, and is a strong first week. As the week began, American Express erased its gains from the August breakout. J&J is extended from the September 29th breakout and is up 32% year to date. Travelers are down significantly as analysts note Thursday, but are still ahead 14% so far for the year.
Semiconductor: TSMC’s vision gets AI support
Taiwan Semiconductor Manufacturing Co., the world’s largest contract chip maker, will report its third-quarter earnings early Thursday. Analysts expect the company, known as TSMC, to earn $2.62 per US share, up 34% year over year. Sales are expected to rise 36% to $32.07 billion in the third quarter. For the fourth quarter, Wall Street expects TSMC to earn $2.56 per share, up 17%, on sales of $31.48 billion, up 19%. TSMC is benefiting from increased production of AI data center chips Nvidia (NVDA), Advanced micro devices (AMD), Broadcom (Afgo) and others. Friday’s sharp pullback extended TSM stock’s extension following the September breakout. The stock has achieved an annual gain of 45%.
Chip Equipment: ASML faces mixed market
Semiconductor equipment giant ASML Holdings (ASML) announces third-quarter results early Wednesday. FactSet analysts expect the Dutch advanced lithography equipment company to achieve 11% annual growth for both profits and sales. For the fourth quarter, Wall Street posted a 12% gain in sales and profits. ASML’s business has been hampered by trade restrictions on the sale of advanced chip equipment to China. However, memory chip makers have begun a new cycle of capital expenditures, which will benefit ASML, analysts say. ASML shares are up 37% year to date.
Event Calendar: Heavy list of conferences
Aside from earnings news, next week will also be full of important industrial gatherings. Oracle is hosting the AI World Conference in Las Vegas Monday through Thursday. This event should garner a lot of attention following Oracle’s $300 billion deal with OpenAI, which was announced in September. Salesforce.com is running the Dreamforce AI Conference Tuesday through Thursday in San Francisco. In the field of healthcare, the European Society of Medical Oncology Congress will begin in Berlin on Friday and continue until the following week.
Stock market earnings summaries
fixed (fast) rose more than 40% to its highest level in August, and then began to consolidate. Shares are still up 29% year to date, ahead of third-quarter results on Monday. Analysts expect an increase in sales momentum to reach 12%. Earnings are expected to rise 14%, which is slightly slower than in the second quarter. Analysts are generally neutral regarding the nuts-and-bolts provider, which acts as an indicator to signal industrial demand.
Financial synchronization (SYF) reports third-quarter results early Wednesday. FactSet expects earnings to increase about 15% to $2.23 per share on a slight decline in revenue to $3.795 billion. SYF stock is trading with a flat base at a buy point of 77.41.
Charles Schwab (Southwest) reports Thursday with analysts looking for earnings growth to accelerate to 60%. Revenue growth is expected to jump to 23%, the first double-digit increase in more than two years. Investors will listen for details about the company’s ambitious plans to expand its branches, which were announced in September.
See updates to IBD watch lists
Black Rock (Black) The third-quarter report is released early Tuesday. Analysts expect earnings to decline 1.4% to $11.30 per share with revenue growing 20% to $6.26 billion. BLK stock is trading in a buy zone of a flat base, above a buy point of 1171.89.
United Airlines (first) reports third-quarter results early Thursday. Analysts expect earnings to decline 20% to $2.65 per share on revenue growth of 3.2% to $15.33 billion.
CSX (CSX) Third quarter results are published after the close on Thursday. Analysts expect earnings per share to decline 7% as revenue declines 1.1%, falling for the fourth straight quarter, FactSet says. But both are expected to turn positive compared to last year in the fourth quarter. CSX touted a new partnership with BNSF as a growth driver in the fourth quarter. Both railroads faced competition from the transcontinental railroads at once Union Pacific(United National Party) dealing for Norfolk South (National Security Council) closes.
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